How Much Does Pell Record as Income from Demers for the Year

question 5

Multiple Choice

How much does Pell record as income from Demers for the year ended December 31, 2020?

• A) $90,400.
• B) $89,000.
• C) $50,400.
• D) $96,000.
• E) $56,000.

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Definitions:

Inventory

The raw materials, work-in-progress products, and finished goods considered to be the portion of a business's assets that are ready or will be ready for sale.

Revenue

The sum of money received from selling goods or providing services that are fundamental to a company's main business activities.

Indirect Effects

Consequences of an action that are not immediately apparent or directly linked to the action but occur as a secondary effect.

Accounting Principle

Fundamental guidelines or rules that govern how financial transactions and events are recorded and reported in financial statements.