Mormino Corporation's income statement appears below:Income StatementSales (all on account)$1,240,000 Cost of goods sold 730,000 Gross margin 510,000 Operating expenses 450,462 Net operating income 59,538 Interest expense 18,000 Net income before taxes 41,538 Income taxes (35%) 14,538 Net income$27,000 The company's gross margin percentage is closest to:
A. 41.1%
B. 5.3%
C. 1888.9%
D. 69.9%
Answer: A
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Auditors are more concerned with the occurrence assertion for revenues than the completeness assertion because:
A. it is difficult to determine when services have been performed. B. entities are more likely to understate than overstate revenues. C. entities are more likely to overstate than understate revenues. D. the allowance for doubtful accounts often is understated.
Compute the present value of an ordinary annuity that pays $13,000 per year for 15 years at 10%.
A) $98,878
B) $99,745
C) $97,578
D) $100,178
The DuPont return on asset ratio would include which of the following?
a. Net profit margin b. Return on equity c. Net income to fixed assets d. Return on investment
The last-in, first-out cost flow method assigns the cost of the items purchased first to ending inventory.
Answer the following statement true (T) or false (F)