35. A business generates $500,000 in sales revenue, but after deducting total expenses, it reports a final profit of $80,000. What are listed expenses?
Answer: B
The listed expenses amount to $420,000.
To determine the listed expenses, we subtract the final profit from the sales revenue. This calculation shows that the total expenses are $500,000 - $80,000, which equals $420,000.
A) $80,000
Option A is incorrect because it represents the profit earned after expenses, not the total expenses incurred by the business. The expenses must account for the difference between sales revenue and profit.
B) $420,000
This option is correct as it accurately reflects the total expenses incurred by the business. By subtracting the profit of $80,000 from the sales revenue of $500,000, we find that the expenses total $420,000.
C) $600,000
Option C is incorrect because it exceeds the total sales revenue. It would imply that the business operated at a loss, which contradicts the information provided that states a profit was achieved.
D) $650,000
This option is also incorrect as it suggests an even greater total expense than the sales revenue. A business cannot have expenses exceeding its income while reporting a profit, making this option invalid.
Conclusion
The correct answer is $420,000 as it is derived directly from the relationship between sales revenue and profit. All other options either misinterpret the profit figure or suggest impossible financial scenarios that do not align with the business's reported outcomes.