
Concept explainers
(1) To explain:
The significance of selling and administrative budget in
Selling and Administrative Expense Budget:
The selling and administrative budget prepare by the sales department of company as they predict the amount spend on the selling and administrative expense on the bases of budgeted sales of the company.
Income Statement:
It includes the information of net income earn or net loss suffered by the company. The expenses deducting from revenue and the resultant is net income or loss to the company. This is informative report that helps the user of financial information to take decision.
(2) To identify:
Three examples of expenses that reported as selling and administrative expense in S Company income statement.
(3) To explain:
The responsibility of S Company selling and administrative expenses budget.

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Chapter 20 Solutions
FINANC. MANGERIAL ACCT. W/CONNECT (LL)
- During the current year, a business sells equipment for $440,000. The equipment cost $290,000 when purchased and placed in service two years ago and $85,000 of depreciation deductions were allowed. The results of the sale are ____. OPTIONS: A) Ordinary income of $85,000 and Sec. 1231 gain of $150,000. B) Sec. 1231 gain of $120,000. C) Ordinary income of $90,000 and LTCL of $30,000. D) Ordinary income of $120,000.arrow_forwardPlease give me true answer this financial accounting questionarrow_forwardSolve this Accounting MCQarrow_forward
- Provide correct answer this financial accounting questionarrow_forwardQuestion: A company sells goods on credit. On one sale, they sold it for $20,000 and offered a 2/10, net/30 payment option. Two days after the sale, the customer complained and they allowed them a $1,000 sales allowance. The customer paid the net amount within 8 days after the sale. The cash proceeds received by the seller are? A. $20,000 B. $19,000 C. $18,600 D. $18,620arrow_forwardSolve thisarrow_forward
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