1.

Li Retailing reported the following items for the current year: Sales = $3,000,000; Cost of Goods Sold = $1,500,000; Depreciation Expense = $170,000; Administrative Expenses = $150,000; Interest Expense = $30,000; Marketing Expenses = $80,000; and Taxes = $300,000. Li's operating income is equal to

Select one:

a. $770,000.

b. $1,070,000.

c. $1,100,000.

d. $1,500,000.

2.Analyze the preparing of the statement of cash flows.

3.Summarize a transactions balance.

4.Explain the value of assets on a balance sheet.

5.Relate the importance of keeping records.

6.Compare and contrast receipts and invoices.

7.Briefly describe the difference between cash and accrual methods of record keeping

8.Briefly discuss the fundamental purpose of accounting principles in effective recordkeeping.