On November 1,2019,Alpha Omega,Inc

question 181

Multiple Choice

On November 1,2019,Alpha Omega,Inc.sold merchandise for $12,000,FOB destination,with payment terms,n/30.The cost of goods sold was $3,840.On November 3,the customer returns on this sale amounted to $4,800.The company received the balance on November 9,2019.Calculate the cost of goods sold from these transactions.

• A) $1,536
• B) $4,896
• C) $3,840
• D) $2,304

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Definitions:

IFRS 3

An international financial reporting standard that provides guidance on accounting for business combinations, requiring acquired assets and liabilities to be recorded at fair value.

Business Combinations

Transactions or events in which one entity gains control over one or more other entities, often involving mergers and acquisitions.

Consolidated Income Statement

A financial document that aggregates the financial performance (revenues, expenses, profits) of a parent company and its subsidiaries.

Net Income

The total earnings of a company after all expenses and taxes have been deducted from revenue.