Toby Toy Store Has Noticed the Following Items That Need

question 98

Multiple Choice

Toby Toy Store has noticed the following items that need to be considered for its income statement for the year ended December 31, 2016: • Commissions of $3,000 for salespeople who made sales in December will be paid January 3, 2017.
• The phone bill of $400 for December was received and will be paid January 20, 2017.
• The store rent of $2,000 for January, 2017 was paid on December 28, 2016.
• At the beginning of November, Toby paid $1,500 for advertising in a monthly magazine that is distributed in November and December of 2016, and January of 2017.
What is the proper amount of expenses to be included in the income statement for the year?

• A)$4,400.
• B)$6,900.
• C)$6,400.
• D)$5,900.

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Definitions:

Marketplace

A physical or virtual space where goods and services are exchanged, typically involving multiple buyers and sellers.

Agricultural Societies

Communities whose economies are based primarily on the production and maintenance of crops and farmland, often signifying a shift from hunter-gatherer lifestyles.

Multipurpose Money

A concept in economics where money is used for various purposes beyond medium of exchange, including as a unit of account, a store of value, and a standard of deferred payment.

Merchant Capitalism

An economic phase in which merchants' wealth is accumulated through trade and the exploitation of international commerce, often preceding industrial capitalism.