In financial reporting, many amounts presented in the financial statements reflect the results of transactions in the future. This requires estimates of those future events to complete the financial statements. What would NOT be an example of this kind of estimate?

Amounts to be settled in court because of lawsuits against the company

The amount of each paycheck for the employees of the business

How much of the long-term assets have been used up in the operation of the business

Which of the following is TRUE concerning gross profit?

Question 11 options:

	Gross profit is a important measure used on the cash flow statement
	Gross profit is always less than net income on the income statement
	Gross profit is calculated by subtracting total liabilities from total assets.
	Gross profit is a subtotal on a multi step income statement

Question 12

For retailers that accept major credit cards as payment, which of the following describes the effect of a credit card sale on the financial statements?

	Decrease in expenses
	Decrease in revenue
	Increase in cash
	Increase in accounts receivable

Question 277

Echo, Inc. sold inventory that they purchased for $400 for $750 in cash to a customer. This will result in which of the following effects on the expanded accounting equation?

Question 27 options:

	Revenue increases by $750
	Expenses increase by $400
	Retained earnings increase by $350
	All of the above will be affected