Beginning inventory plus net purchases is:
A. Cost of goods sold.
B. Shown on the balance sheet.
C. Merchandise (goods) available for sale.
D. Ending inventory.
E. Sales.
Answer: C
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When company management decides that it is unwilling to follow the "conventional wisdom" and instead finds a new way to gain competitive advantage, it might be said to be:
A) searching for loose bricks. B) changing the rules of engagement. C) collaborating. D) building layers of advantage. E) innovating.
When a company wishes to purchase and retire its own stock, the company must
a. decrease the stock account balances by the original issue price. b. record a gain or loss depending on the difference between original selling price and repurchase cost. c. get the approval of the state to do so. d. issue a different class of stock to the former stockholders.
Which of the following is true about an integrity-based culture?
A. It empowers legal bodies to monitor compliance. B. It reinforces a particular set of values. C. It emphasizes rules as the primary responsibility of ethics. D. It reinforces a particular set of rules.
A company sold equipment that originally cost $100,000 for $60,000 cash. The accumulated depreciation on the equipment was $40,000. The company should recognize a:
A. $0 gain or loss. B. $20,000 gain. C. $60,000 gain. D. $20,000 loss. E. $40,000 loss.