Vertical analysis of an income statement is obtained by using Net Sales as a constant and
dividing every figure on the income statement by Net Sales.
Indicate whether the statement is true or false
TRUE
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Patty buys a Persian rug from James, a plumber, in an online auction. James called Patty on Wednesday to inform her that she submitted the winning bid and that she could pick it up anytime or he would ship the rug to her on Friday. On Thursday, the rug was destroyed in a garage fire at James' house. Which of the following statements is true in this case?
A. Patty bears the loss as James was only providing a service. B. James bears the loss as he has tendered delivery of goods. C. Patty bears the loss as James is not a merchant. D. James bears the loss as he has not delivered the goods.
A nonprofit organization placed a Better Business Bureau national charity seal in its promotional materials. The organization is demonstrating ______.
A. efficiency B. effectiveness C. transparency D. performance
The entry to record the sale of equipment costing $40,000, with accumulated depreciation of $34,000 and sale price of $7,700, will include
A) a gain on sale of equipment of 1,700. B) a gain on sale of equipment of 7,700. C) a loss on sale of equipment of 32,300. D) a loss of sale of equipment of 26,300.
Assume an organization has total current assets of $200,000; total current liabilities of $75,000; inventories of $50,000; prepaid expenses of $25,000; net sales of $770,000; and beginning accounts receivable of $42,000 and ending accounts receivable of $44,000 . What is the accounts receivable turnover for this organization?
a. 2.7 b. $125,000 c. 17.9 d. 19.9