[The following information applies to the questions displayed below.] Sanchez Company engaged in the following transactions during Year 1:1) Started the business by issuing $42,000 of common stock for cash. 2) The company paid cash to purchase $26,400 of inventory. 3) The company sold inventory that cost $16,000 for $30,600 cash. 4) Operating expenses incurred and paid during the year, $14,000. Sanchez Company engaged in the following transactions during Year 2:1) The company paid cash to purchase $35,200 of inventory. 2) The company sold inventory that cost $32,800 for $57,000 cash. 3) Operating expenses incurred and paid during the year, $18,000. Note: Sanchez uses the perpetual inventory system.What is Sanchez's gross margin for Year 2?
A. $32,800
B. $24,200
C. $6,200
D. $21,800
Answer: B
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Under the allowance method, to write off an account that has been determined to be uncollectible, the entry would include
a. debiting Accounts Receivable and crediting Allowance for Bad Debts. b. debiting Bad Debt Expense and crediting Allowance for Bad Debts. c. debiting Allowance for Bad Debts and crediting Bad Debt Expense. d. debiting Allowance for Bad Debts and crediting Accounts Receivable.
In 2020, the TransUnion Company had consulting revenues of $1,000,000 while costs were $750,000. In 2021, TransUnion will be introducing a new service that will generate $150,000 in sales revenues and $60,000 in costs. Assuming no changes are expected for the other services, operating profits are expected to increase between 2020 and 2021 by:
A. $150,000. B. $60,000. C. $250,000. D. $90,000.
______ argued that leaders and managers are distinct; they are different types of people.
A. Jago B. Zaleznik C. Kotter D. Bass
Which of the following is/are true?
a. Management can sell securities with unrealized holding gains (or losses) and transfer through net income to Retained Earnings the entire unrealized holding gain (or loss)—that is, management can affect the timing of gain or loss recognition in net income for securities available-for-sale, but not for trading securities. b. The timing ability is asymmetric in that impairment rules preclude indefinite deferrals of the recognition in income of unrealized losses, but not unrealized gains. c. Users of the financial statements should be alert to the accounting effect on net income in evaluating the profitability of firms with both trading securities and securities available-for-sale. d. all of the above e. none of the above