Aaker Corporation, Which Has Only One Product, Has Provided the Following

question 139

Multiple Choice

Aaker Corporation, which has only one product, has provided the following data concerning its most recent month of operations: The total gross margin for the month under the absorption costing approach is:

• A)$98, 100
• B)$198, 000
• C)$72, 000
• D)$12, 000

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Definitions:

Cash Receipts Journal

A dedicated journal used to record all cash inflows or receipts a business receives.

Account Credited

The action of recording an increase in a liability, equity, or revenue account, or a decrease in an asset or expense account.

Subsidiary Ledger

A detailed set of accounts that supports the main ledger, breaking down specific account transactions, like accounts receivable and payable.

General Ledger Accounts

The comprehensive set of accounts that record all financial transactions of a business, summarized in the general ledger.