$ 20,400 $ 15,000 $ 5,400 36.0% Net income The trend in sales revenue is unfavorable, but that is more than offset by thedeclines in operating expenses, with the exception of utilities, which increasedover the period. Despite the 2.5% drop in sales, the net effect was a favorableincrease in net income of 36%, which was in large part spurred by the drop inwages expense. Moderate DIFFICULTY: Bloom's: Applying FNMN.WARD.16.02-05 - LO: 02-05 LEARNING OBJECTIVES: ACCT.ACBSP.APC.02 - GAAP ACCREDITING STANDARDS: ACCT.ACBSP.APC.09 - Financial StatementsACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic Match each of the following accounts with its proper account group from groups listed below. Assets Liabilities Stockholders’ Equity Revenue Expenses Moderate DIFFICULTY: Bloom's: Remembering FNMN.WARD.16.02-01 - LO: 02-01 LEARNING OBJECTIVES: ACCT.ACBSP.APC.02 - GAAP ACCREDITING STANDARDS: ACCT.ACBSP.APC.09 - Financial StatementsACCT.ACBSP.APC.13 - Long-term Assets ReportingACCT.ACBSP.APC.15 - Current Assets ReportingACCT.ACBSP.APC.16 - Current Liabilities ReportingACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Unearned Rent b ANSWER: Prepaid Insurance a ANSWER: Fees Earned d ANSWER:
Net income $ 20,400 $ 15,000 $ 5,400 36.0% The trend in sales revenue is unfavorable, but that is more than offset by thedeclines in operating expenses, with the exception of utilities, which increasedover the period. Despite the 2.5% drop in sales, the net effect was a favorableincrease in net income of 36%, which was in large part spurred by the drop inwages expense. DIFFICULTY: Moderate Bloom's: Applying LEARNING OBJECTIVES: FNMN.WARD.16.02-05 - LO: 02-05 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.09 - Financial StatementsACCT.AICPA.FN.03 - MeasurementBUSPROG: Analytic Match each of the following accounts with its proper account group from groups listed below. Assets Liabilities Stockholders’ Equity Revenue Expenses DIFFICULTY: Moderate Bloom's: Remembering LEARNING OBJECTIVES: FNMN.WARD.16.02-01 - LO: 02-01 ACCREDITING STANDARDS: ACCT.ACBSP.APC.02 - GAAP ACCT.ACBSP.APC.09 - Financial StatementsACCT.ACBSP.APC.13 - Long-term Assets ReportingACCT.ACBSP.APC.15 - Current Assets ReportingACCT.ACBSP.APC.16 - Current Liabilities ReportingACCT.AICPA.FN.03 - Measurement BUSPROG: Analytic Unearned Rent ANSWER: b Prepaid Insurance ANSWER: a Fees Earned ANSWER: d