Consider the following events for Sophia Incorporated:April 5 Sophia purchases volleyballs for $200 on account.April 6 Sophia advertises a sand volleyball camp for $20 a person.April 12 Thirty people sign up for the camp paying a total of $600.April 21 Sophia hosts the sand volleyball camp.April 23 Sophia pays for the volleyballs purchased on April 5.Under cash-basis accounting, what is the appropriate day to record the expenses related to the sand volleyball camp?
A. April 21.
B. April 23.
C. April 5.
D. April 12.
Answer: B
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Cycle Haven, Inc offers warranties on all their bikes
They estimate warranty expense at 3.5% of sales. At the beginning of 2017, the Estimated Warranty Payable account had a credit balance of $1,400. During the year, Cycle Haven had $299,000 in sales and had to pay out $5,900 in warranty payments. How much Warranty Expense will be reported on the 2017 income statement? A) $5,965 B) $7,300 C) $9,065 D) $10,465
All of the following are part of a financial analysis EXCEPT
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A credit card statement will not show the method of calculating finance charges
Indicate whether the statement is true or false.