Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Net Sales

Financial Accounting

4. Merchandising Operations

Net Sales

Previous problemNext problem

Struggling with Financial Accounting?

Join thousands of students who trust us to help them ace their exams!Watch the first video

Multiple Choice

If your checking account has grown from \$2,000 to \$2,500 over the course of a year, and you made no additional deposits or withdrawals, what is the net sales for the year?

$2,000

$2,500

$500

Previous problemNext problem

Verified step by step guidance

Step 1: Understand the problem. The checking account balance has increased from $2,000 to $2,500 over the course of a year, with no additional deposits or withdrawals. This implies the growth is due to net sales or income generated during the year.

Step 2: Calculate the change in the account balance. Subtract the initial balance ($2,000) from the final balance ($2,500). Use the formula: $ \text{Change in Balance} = \text{Final Balance} - \text{Initial Balance} $.

Step 3: Interpret the result of the calculation. The change in balance represents the net sales or income for the year, as no other transactions (deposits or withdrawals) occurred.

Step 4: Compare the calculated change in balance to the provided answer choices ($0, $2,000, $2,500, $500) to determine the correct answer.

Step 5: Verify the logic. Ensure that the increase in the account balance aligns with the concept of net sales, as no other factors influenced the account growth.