Which of the following represents income for Gorr Company for the year ended December 31, 2010?
| a. | $180,000 |
| b. | $185,000 |
| c. | $190,000 |
| d. | $200,000 |
| e. | None of the answers are correct. |
ANS: C PTS: 1 DIF: Difficulty: Moderate
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Application
NOT: Time: 5 min.
30. The following data relate to Falcon Company for the year ended December 31, 2012. Falcon Company uses the cash basis.
| Sales for cash | $180,000 |
| Sales for credit | 190,000 |
| Cost of inventory sold | 210,000 |
| Collections from customers | 350,000 |
| Purchases of inventory on credit | 200,000 |
| Payment for purchases | 220,000 |
| Selling expenses (accrual basis) | 60,000 |
| Payment for selling expenses | 70,000 |
Which of the following amounts represents income for Falcon Company for the year ended December 31, 2012?
| a. | $90,000 |
| b. | $80,000 |
| c. | $70,000 |
| d. | $60,000 |
| e. | None of the answers are correct. |
ANS: D PTS: 1 DIF: Difficulty: Moderate
NAT: BUSPROG: Communication
STA: AICPA: FN: Measurement | ACBSP: GAAP | IMA: Financial Statement Analysis
TOP: Traditional Assumptions of the Accounting Model KEY: Bloom's: Application