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What is the  primary purpose of the  Statement of  Affairs ? a. To determine how much is owed by the  customers b. To determine  the amount for  the  owners  equity c. To determine how is  left  in the bank account d. To determine if there  was a  gain or loss  on disposal

What is the  primary purpose of the  Statement of  Affairs ? a. To determine how much is owed by the  customers b. To determine  the amount for  the  owners  equity c. To determine how is  left  in the bank account d. To determine if there  was a  gain or loss  on disposal

Cornerstones of Financial Accounting
Cornerstones of Financial Accounting
4th Edition
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Jay Rich, Jeff Jones
Chapter12: Fainancial Statement Analysis
Section: Chapter Questions
Problem 20MCQ
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What is the  primary purpose of the  Statement of  Affairs ?

a. To determine how much is owed by the  customers
b. To determine  the amount for  the  owners  equity
c. To determine how is  left  in the bank account
d. To determine if there  was a  gain or loss  on disposal
 
 
 

The term Margin is determined by which of the  following operations?

a. Adding  all the  incomes
b. Dividing gross  profit  by sales  
c. Subtracting   expenses  from sales
d. Multiplying capital by  a  decimal
 
 

 The Sandy Bay   is a trader in sand.  On December 31, 2010 the closing inventory was

    completely destroyed by flood rains. The following information is available:

(1) Inventory at December  1, 2010  at cost $31,400
(2) Purchases for December 2010  $55,600
(3) Sales for December 2010  $88,800
(4) Standard mark-up  is  25%

Based on this information, what was the value of the closing inventory?                                                    

a. $15,960  
b. $17,760
c. $20,400  
d. $25,800  
 
 
 
 

The Grey Flannel is a trader   in French cologne. The firm operates with a standard   mark up  

       of 2 / 5. What would be the margin?

a. 1 / 7
b. 1 / 3
c. 2 / 3
d. 2 / 7

 

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