Although GGE Enterprises Inc. received a good deal on a used truck, the amount recorded in the accounting records is the amount the company paid, not the amount the truck was actually worth.

Thomas Company records sales for the month along with the expenses incurred to produce the sales.

GGE Enterprises records a deposit received from a customer for work to be performed later in the month. The customer is billed for the remaining amount after the work is complete, and the customer’s payment is recorded.

Several years after Thomas Company purchased new office equipment, the company’s accounting records still show the original purchase price.

The accounting records of Thomas Company are in dollars, not euros, although the Ohio-based company is owned by a German firm.

The home of Rob Elliot, the owner of GGE Enterprises Inc., is not listed among the company’s assets.

Thomas Company provides earnings information to investors at the end of every quarter.

Despite several years of falling sales, Thomas Company continues to forecast sales and make strategic plans to raise revenues and cut expenses.

Answer rating: 100% (QA)

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