On December 31. Year 1. Gaskins Co. owed $4,500 in sataries to employees who had worked during

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Question:

On December 31. Year 1. Gaskins Co. owed $4,500 in sataries to employees who had worked during Decemoer but would be paid in January. If the year-end adjustment is properly recorded on December 31, year 1.

1. what will be the effect of this accrual on the following items for Gaskins?

	Net Income	Cash Flow from Operation Activities
a.	No effect	No effect
b.	Decrease	No effect
c.	Increasee	Decrease
d.	No effect	Decrease

2. Tin company had the following results during 2017

Sales	$ 701,900
Gross Margin	$ 213,400
Ending Inventory	$ 96,400

Based on the information provided, what was the company's cost of goods sold?

a. $117,000

b. $392,100

c. $488,500

d. $605,500

3. Which of the following describes the type of management structure that is in place when board members are reluctant to fire an incompetent chief executive officer?

a. Corporate management

b. Closely held corporation

c. Enternched managemet

d. Limited liability corporation