Biology Forums - Study Force

Mia Hero started her own catering business called Hero's Catering. Analyze each of the following transactions for the first month of business. Prepare an income statement for the month of March.
 
  a. Mia contributed 10,000 of her own money to start Mia's catering.
  b. The business borrowed another 5,000 from the local bank.
  c. The business rented a kitchen for 1,500 for the month.
  d. The business spent 1,200 on food, spices and other supplies used during the month.
  e. The business hired Betty Foit as an assistant chef and paid her 500 for the month.
  f. The business earned 7,000 in revenues during the month.

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(Q. 2) The chief information officer (CIO) prioritizes and selects IT projects and resources.
  Indicate whether the statement is true or false

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(Q. 3) Which statement below is TRUE of the straight-line method of depreciation?
 
  A) It is a method that will provide higher amounts of depreciation expense in the early years of an asset's life and smaller amounts in the later years.
  B) It is a method that results in unequal amounts of depreciation expense each year.
  C) It is a method that is based upon the actual amounts of an asset used up each year, such as the number of miles a truck is driven.
  D) It is a method that results in equal amounts of depreciation expense each year.

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(Q. 4) An employee's total earnings are also known as ____________________.
 Fill in the blank(s) with correct word

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(Q. 5) Net sales equals ________.
 
  A) sales minus cost of goods sold
  B) sales minus sales returns and allowances minus sales discounts
  C) sales divided by net income
  D) net income divided by sales

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(Q. 6) Assuming that the company uses the perpetual inventory system, determine the gross profit for the sale of May 23using the FIFO inventory cost method.
 a. 108
  b. 120
  c. 72
  d. 180

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