23. What could be the cause of an increase in a firm's sales number? *

The firm has increased prices.

More units of product have been sold.

Both answers are correct

None of the answers is correct

24. What is the required reporting for discontinued operations? *

The results of discontinued operations should be reported as an extraordinary item.

The gain or loss on the disposal should be reported in comprehensive income.

The operating results of discontinued operations should be reported as part of continuing operations and any gain or loss on disposal should be disclosed separately from continuing operations.

The operating results of discontinued operations should be reported separately from continuing operations and any gain or loss on disposal should be also be disclosed separately from continuing operations.

25. Bright Company purchased 20% of the voting common stock of Bulb Company on January 1 and paid $400,000 for the investment. Bulb Company reported earnings of $300,000 for the fiscal year ended December 31. Cash dividends were paid during the year in the amount of $20,000.The ending balance in the investment account on the balance sheet on December 31 using the cost method is: *

$4,000.

$60,000.

$400,000.

$456,000.

None of the options

26. An entity has a 50% gross margin, general and administrative expenses of $50, interest expense of $20, and net income of $10 for the year just ended. If the corporate tax rate is 50%, the level of sales revenue for the year just ended was *

$90

$135

$150

$180

None of the options