Nu Company Reported the Following Data for Its First Year

question 27

Multiple Choice

Nu Company reported the following data for its first year of operations:
$$\begin{array} { l r } \text { Net sales } & \$ 2,800 \\\text { Cost of goods sold } & 1,680 \\\text { Operating expenses } & 880 \\\text { Ending inventories } & 820\end{array}$$
What is Nu's gross profit ratio?

• A)80%.
• B)49%.
• C)40%.
• D)5%.

Describe the characteristics and advantages of a voucher system.

Understand the principles and benefits of electronic funds transfers (EFT).

Apply journal entry preparation skills for cash transactions, including cash collections and petty cash fund management.

Identify and explain the components of a bank reconciliation and its importance.

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Definitions:

Margin Of Error

A statistic measure of the amount of random sampling error in a survey’s results—for example, a 3% margin of error means that the survey’s result could be 3% lower or 3% higher than the average response—the larger the sample is, the smaller the margin of error is.

Measurement Validity

The extent to which a tool, test, or instrument accurately measures what it is intended to measure.

Freudian Psychoanalysis

A theoretical approach in psychology that emphasizes unconscious motivations and conflicts as the basis of human behavior, developed by Sigmund Freud.

Humanism

A philosophical and ethical stance that emphasizes the value and agency of human beings, individually and collectively, and generally prefers critical thinking and evidence over dogma or superstition.