Answered: Financial information is presented…

Financial information is presented below: Operating expenses $ 42,000 Sales returns and allowances 12,000 Sales discounts 3,000 Sales revenue 165,000 Cost of goods sold 96,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Q: Under the IAS 16, there is an impairment loss of property, plant and equipment if?

A: IAS 16 refers to international accounting standards related to the property, plant, and equipment…

Q: 6. Under IFRS, which of the following must be expensed? a. maintenance only b. repairs only c.…

A: Repair of equipment or purchase of its parts over $5000 is to be capitalized if it leads to an…

Q: Costs incurred internally to create intangibles are required to be a. expensed as incurred b.…

A: Intangible Assets: An intangible asset is a kind of asset that does not have a physical…

Q: In any construction project, the total bill to the owner must equal a. Gross profit b. Net profit c.…

A: The construction contract accounting is the accounting system suitable for businesses engaged in…

Q: 5. Which of the following is an element of cost? a. Cost of employee benefits not directly…

A: The financial position of the company can be arrived from the income statement prepared by the…

Q: Which one of the fixed asset accounts listed will not have a related contra asset account? a.Office…

A: Explanation: Contra asset account for fixed asset accounts is accumulated depreciation account. The…

Q: Which of the following is not included as part of the cost of an item of property, plant and…

A: Property, Plant and Equipment refers to All fixed Asset having long useful life more than One year.…

Q: Explain the differences between depreciation expense and impairment loss of property, plant and…

A: The difference between Depreciation and impairment is as follows: Depreciation Impairment It is…

Q: The existing asset does not have sufficient capacity to meet the present demands that are placed on…

A: Fixed asset: It can be defined as an asset that is used by the business in its production activities…

Q: Choice Are revenue expenditures.

A: Extraordinary repairs are repairs that are of high cost and increase the useful life of the asset…

Q: Discarding Unproductive assets will -------- EVA a. Improve b. Reduce c. Maintain d. No Effect

A: Economic Value Added is equal to Net Operating Profit after tax minus Capital invested * WACC

Q: Which of the following is NOT recurring cost A. Material cost B. Expediting cost C. Workers cost D.…

A: Recurring cost refers to a cost that is repeated or reoccurs on a regular basis. This type of cost…

Q: give the definition, recognition, measurement and derecognition of Impairment of assets.

A: impairment of assets Definition An asset is stated "impaired" when its Market value (MV)less than…

Q: Which transaction is not processed in the fixed asset system? a. purchase of building b. repair of…

A: Fixed Asset: The asset used by company for more than one year is known as fixed asset. Fixed asset…

Q: Uncontrollable costs are the costs which be influenced by the action of a specified member of an…

A: In the process of manufacturing goods certain costs are incurred. The type of costs involved in the…

Q: compounding periods wrong

A: Compounding Period: It represents the period of time between the last time interest was compounded…

Q: Funds for replacement is provided by depreciation ________ 8. If adequate maintenance is incurred,…

A: 7.Funds for replacement is provided by depreciation Answer: True Explanation: Depreciation provides…

Q: Under the completed-contract method, the Contract Asset/Liability account balance will consist of O…

A: The completed contract method is an accounting approach where revenue and expenses from long-term…

Q: “Cost written off as depreciation on equipment already purchased is always irrelevant.” Do you…

A: Relevant cost: Relevant cost is the avoidable cost which incurred at the time of the decision-making…

Q: Which of the following costs can be capitalized for self-constructed tangible as - Materials and…

A: Introduction:- The cost of a self-constructed fixed asset should contains those costs that relate…

Q: True or False Replacement ends depreciation

A: Replacement Cost pays the dollar amount needed to replace damaged personal property or dwelling…

Q: Which one of the following statements is true? If the activity method is in use, residual value…

A: Lets understand the basics. In activity based costing, depreciation is calculated based on the…

Q: Direct materials used and Direct labor cost are incorrect

A: Direct consists of Direct labor, Direct Material. While applied manufacturing overhead is an…

Q: Why must we have an entry to remove fully depreciated fixed assets (no salvage value) from the books…

A: Depreciation: Depreciation is a method of reducing the capitalized cost of long-lived operating…

Q: Maintenance and Overhaul costs are. direct Operating expenses none accrued indirect

A: The objective of the question is to categorize maintenance and overhaul costs in terms of financial…

Q: Do the fixed assets lose their value even though they continue to function and contribute to the…

A: Meaning of Fixed Assets Fixed assets are those assets which are used in the business with the…

Q: Exterior and interior painting would be classified as O a. asset improvements O b. ordinary…

A: Assets are the resources owned by the entity. These are of two types; current and non-current.…

Q: What is avoidable and unavoidable cost? In terms of decision making how do we treat the following…

A: Avoidable and unavoidable costs are the types of relevant and irrelevant costs that play a major…

Q: Remodeling and rehabilitation: O Can usually be undertaken by the property manager without…

A: Rehabilitants and remodeling both are a different thing. Rehabilitations consists of renovating…

Q: If wages paid for construction of building are debited to wages account. It is An error of Omission…

A: At the time of preparation of trial balance, ideally both sides should match with each other.

Q: A company's old machine has a book value of $49,000 and a remaining three-year useful life. The old…

A: KEEP OR REPLACE DECISIONIf there is increase in income by replacing, then the old machine should be…

Q: Which of the following would not be considered a remediation cost? a) permit costs to acquire…

A: Environmental law is established to protect the environment. The companies use multiple…

Q: The loss of material during production that does not have any recoverable value are classified as…

A: Introduction: Material Loss: While producing , packing and storing some extent goods are damaged…

Q: All of the following factors are considered in determining the useful life of an asset except:…

A: The question is related to Depreciation Accounting. The factors considered for depreciation are as…

Question

no work required

Financial information is presented below:
Operating expenses
$ 42,000
Sales returns and allowances
12,000
Sales discounts
3,000
Sales revenue
165,000
Cost of goods sold
96,000
Gross profit would be

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

question 23 choose the correct answer from the choices
SECTION B: ATTEMPT ANY THREE (3) QUESTIONS PPE-16 QUESTION THREE (3) (a) In accordance with the appropriate standards, explain the differences between the cost and revaluation model for the measurement of Property, Plant and Equipment.
What guidance does the Codification provide on the accrual of costs associated with planned major maintenance activities?
A limited-life intangible is reported at its ____________. a. replacement cost b. carrying amount unless impaired c. liquidation value d. acquisition cost
Under the completed-contract method, Question 16 options: a revenue, cost, and gross profit are recognized at the time the contract is completed. b revenue and cost are recognized during the production cycle, but gross profit recognition is deferred until the contract is completed. c revenue, cost, and gross profit are recognized during the production cycle. d None of these answers are correct.
What is the entry to remove equipment that is sold before it is fully depreciated?
A service is a. intangible. b. perishable. c. created and consumed at the time it is performed (or nearly so). d. all of the above. e. a and c only
QUESTION 6 Which cost of quality pertains to the cost of disposing of scrap? a. appraisal b. internal failure C. prevention d. external failure
The carrying amount of an item of property, plant and equipment shall be derecognized 1. On disposal II. When no future economic benefits are expected from the use or disposal of the asset II only Neither I nor II Either I or II x I only
Maintenance and Overhaul costs are. direct Operating expenses none accrued indirect
Define the term salvage value of the equipment?
S8 The term inadequacy refers to: Multiple Choice The inability of a plant asset to meet its demands. An asset reaching its book value. An asset that does not have a salvage value. The condition where the salvage value is too small to replace the asset. The process of depletion.