146.Financial information is presented below:
Operating Expenses€ 180,000
Sales Returns and Allowances52,000
Sales Discounts24,000
Sales Revenue640,000
Cost of Goods Sold308,000
The gross profit rate would be
a..454.
b..546.
c..500.
d..538.
147.If a company has sales of $630,000, net sales of $600,000, and cost of goods sold of $360,000, the gross profit rate is
a.62%.
b.60%
c.40%.
d.38%.
148.Murray’s Fashions sold merchandise for $114,000 cash during the month of July. Returns that month totaled $2,400. If the company’s gross profit rate is 40%, Murray’s will report monthly net sales revenue and cost of goods sold of
a.$114,000 and $45,600.
b.$111,600 and $44,640.
c.$111,600 and $66,960.
d.$114,000 and $66,960.
149.During August, 2014, Joe’s Supply Store generated revenues of $90,000. The company’s expenses were as follows: cost of goods sold of $36,000 and operating expenses of $6,000. The company also had rent revenue of $1,500 and a gain on the sale of a delivery truck of $3,000.
Joe’s gross profit for August, 2014 is
a.$90,000.
b.$57,000.
c.$54,000.
d.$48,000.
150.During August, 2014, Joe’s Supply Store generated revenues of $90,000. The company’sexpenses were as follows: cost of goods sold of $36,000 and operating expenses of $6,000. Thecompany also had rent revenue of $1,500 and a gain on the sale of a delivery truck of $3,000.
Joe’s other income and expense (loss) for the month of August, 2014 is
a.$0.
b.$1,500.
c.$3,000.
d.$4,500.
151.During August, 2014, Joe’s Supply Store generated revenues of $90,000. The company’sexpenses were as follows: cost of goods sold of $36,000 and operating expenses of $6,000. Thecompany also had rent revenue of $1,500 and a gain on the sale of a delivery truck of $3,000.
Joe’s income from operations for the month of August, 2014 is
a.$90,000.
b.$58,500.
c.$55,500.
d.$48,000.
152.During August, 2014, Joe’s Supply Store generated revenues of $90,000. The company’s expenses were as follows: cost of goods sold of $36,000 and operating expenses of $6,000. The company also had rent revenue of $1,500 and a gain on the sale of a delivery truck of $3,000.
Joe’s net income for August, 2014 is
a.$54,000.
b.$52,500.
c.$49,500.
d.$48,000.
153.Operating expenses include salaries, utilities, advertising, and depreciation. International Financial Reporting Standards allow different presentation formats including by
a.magnitude.
b.nature.
c.position.
d.classification.
154.Operating expenditures include salaries, utilities, advertising, and depreciation. Presentation of operating expenses by nature
a.provides very detailed information, with numerous line items.
b.aggregates costs into groupings based on the primary functional activities in which the company engages.
c.requires disclosures of additional details regarding the nature of certain expenses.
d.All of these answer choices are correct.
155.International Financial Reporting Standards call for companies to mark the recorded values of certain types of assets and liabilities to fair value each period. These unrealized gains and losses are excluded from net income but included in comprehensive income and include all of the following
except
a.adjustments to pension plan assets.
b.gains from foreign currency translation.
c.unrealized losses on certain types of investments.
d.adjustment to fixed assets for depreciation.