The 2014 income statement of Deal Mart shows operating revenues of $130,800, selling expenses of $37,100, general and administrative expenses of $34,900, interest expense of $900, and income tax expense of $11,430 . Deal Mart's stockholders' equity was $280,000 at the beginning of the year and $320,000 at the end of the year. The company has 20,000 shares of stock outstanding at December 31,
2014.Read the information about Deal Mart. What is Deal Mart's net income?
a. $80,000
b. $92,190
c. $130,800
d. $46,470
d
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During the first phase of an audit, a CPA most likely would:
A. inquire of the company's attorney as to whether any unrecorded claims are probable or asserted. B. identify specific internal control activities that are likely to prevent fraud. C. evaluate the reasonableness of the company's accounting estimates. D. evaluate the integrity of management.
Performance measurements and a reward system are part of which cost management element?
a. motivational b. informational c. reporting d. all of the above
Which phenomenon holds that people seek out messages they agree with and avoid messages they disagree with?
A) the S-M-R model B) confirmation bias C) concentric-circle theory D) the spiral of silence
Merchant wholesalers can develop their own marketing strategies, including pricing strategies, because they:
A. facilitate transactions in exchange for commissions. B. take legal title to the goods they distribute. C. are the producers of the goods they distribute. D. are the least common form of independent wholesalers.