The Portland Division's Operating Data for the Past Two Years

question 23

Multiple Choice

The Portland Division's operating data for the past two years is as follows:

The Portland Division's margin in Year 2 was 150% of the margin for Year 1.
-The sales for Year 2 were:

• A)$750,000
• B)$2,000,000
• C)$3,846,154
• D)$2,400,000

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Definitions:

End-Of-Period Spreadsheet

A document used to gather all account balances at the end of an accounting period to prepare financial statements.

Prepaid Insurance

An asset account that represents insurance payments made in advance for coverage extending over future periods.

Unearned Revenue

Funds paid to a company for products or services that are still to be provided or executed.

Income Statement

A financial statement that displays a company's revenues, expenses, and net income over a specific period, demonstrating the financial performance of the business.