GoGo Furniture Has Collected the Following Customer-Related Information

question 17

Multiple Choice

GoGo Furniture has collected the following customer-related information:
The total order level cost is:

• A) $6000
• B) $16 000
• C) $24 500
• D) $29 000

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Definitions:

Retained Earnings

The cumulative amount of profits that have been reinvested in the business rather than distributed to shareholders as dividends.

Dividends

Dividends disbursed to members holding shares in a corporation, generally originating from the profits of the business.

Salary Expense Accrual

An accounting practice of recognizing salary expenses incurred in a period that has not yet been paid out in order to accurately reflect the company's liabilities.

Adjusting Entries

Account keeping entries made at the period's end in accounting to distribute financial inflows and outflows to the time slot in which they really took place.