The direct write-off method violates the <u>matching principal</u>, which says that revenues and expenses are recorded in period that they occur (not necessarily when they are collected/written off).
Answer:
Their net operating income for the year was $39,628
Explanation:
Flip or Flop's net operating income for the year = Gross revenue - Cost of Goods Sold - Operating expenses
Their Cost of Goods Sold (COGS) was 21% of gross revenue, therefore:
Cost of Goods Sold = 21% x $93,200 = $19,572
The company has operating expenses for this same period of $34,000.
Net operating income for the year = $93,200 - $19,572 - $34,000 = $39,628
Answer Choices:
A. is staffed by accountants, economists, tax lawyers
B. keeps Congress well informed on international affairs
C. was created by Article III of the Constitution
D. consents to treaties and trade agreements negotiated by the President
Answer:
A.
