A Company Had the Following Partial List of Account Balances

question 4

Multiple Choice

A company had the following partial list of account balances at year-end: What amount of Net Sales would be shown on the income statement?

• A)$55,700.
• B)$56,000.
• C)$57,200.
• D)$64,200.

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Definitions:

Commercial Draft

A written order from one party to another, directing the payment of a specified sum of money to a third party, often used in trade.

Banker's Acceptance

A short-term debt instrument issued by a company but guaranteed by a bank, commonly used in international trade.

Trade Acceptance

A written promise or a draft by one party, the seller, to another, the buyer, to pay a specified sum of money at a future date.

Sight Draft

A financial instrument that is payable on demand when presented to the drawee.