GMAT Question of the Day - Daily to your Mailbox; hard ones only

It is currently 16 Dec 2018, 13:06

Close

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track
Your Progress

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel
Events & Promotions in December
PrevNext
SuMoTuWeThFrSa
2526272829301
2345678
9101112131415
16171819202122
23242526272829
303112345
Open Detailed Calendar
  • Free GMAT Prep Hour

     December 16, 2018

     December 16, 2018

     03:00 PM EST

     04:00 PM EST

    Strategies and techniques for approaching featured GMAT topics
  • FREE Quant Workshop by e-GMAT!

     December 16, 2018

     December 16, 2018

     07:00 AM PST

     09:00 AM PST

    Get personalized insights on how to achieve your Target Quant Score.

Financial Accounting question

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
TAGS:

Hide Tags

Intern
Intern
avatar
Joined: 22 May 2018
Posts: 3
Financial Accounting question  [#permalink]

Show Tags

New post 02 Jul 2018, 09:27
Hi guys,

Not a GMAT question, but I cannot figure out this very basic q and wanted some help.

Carlita began 2014 with a taxes payable account balance of $3,000. On December 31, 2014, its taxes payable account balance is $7,000. How much did Carlita pay to the tax authorities during the year?

A. 2,000
B. 4,000
C. 6,000
D. Cannot be determined

Income statement:
Sales.........120,000
Less COGS.........90,000
Gross Margin.........30,000

Less Operating Expenses 10,000
Operating Income.......20,000

Less Interest Expenses.......2,000
Income before Taxes..... 18,000

Less income expense......6,000
Net income....... 12,000


So I initially thought it would be 6,000 because that's reported on the income statement-- that's what she actually paid in taxes right? I believe the answer is supposed to be 2,000.
Director
Director
avatar
V
Joined: 30 Jan 2016
Posts: 834
Location: United States (MA)
Reviews Badge
Financial Accounting question  [#permalink]

Show Tags

New post 03 Jul 2018, 09:18
Hi tumpti,

Should be 2,000.

3,000+6,000 - X = 7,000 => X=2,000
Attachments

jk.png
jk.png [ 4.42 KiB | Viewed 1595 times ]


_________________

Non progredi est regredi

GMAT Club Bot
Financial Accounting question &nbs [#permalink] 03 Jul 2018, 09:18
Display posts from previous: Sort by

Financial Accounting question

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


Copyright

GMAT Club MBA Forum Home| About| Terms and Conditions and Privacy Policy| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.