Question

Championship Sports Inc. operates two divisions: the Winter Sports Division and the Summer Sports Division. Which of the following income and expense accounts were provided from the trial balance as of December 31, 20yd, the end of the fiscal year, after adjustments?

a) Net profit margin for each division.
b) Inventories of each division.
c) Income and expenses for each division.
d) The ratio of Winter Sports Division to Summer Sports Division profits.

Answer 1

The income and expense accounts provided from the trial balance include net profit margin, inventories, and income and expenses for each division.

Step-by-step explanation:

The income and expense accounts that were provided from the trial balance as of December 31, 20yd, the end of the fiscal year, after adjustments include:

1. Net profit margin for each division: The trial balance would include the net profit for each division, which is the difference between the revenue and expenses related to each division.
2. Inventories of each division: The trial balance would include the inventory accounts for each division, which represent the value of goods held for sale by each division.
3. Income and expenses for each division: The trial balance would include the income and expense accounts for each division, which provide a breakdown of the revenue and costs related to each division.