Consider the Following Short Case as You Respond to the Next

question 31

Multiple Choice

Consider the following short case as you respond to the next question: VLC Corporation sold merchandise with a cost of $200 on account for $300 to PRT Corporation; credit terms were 2 / 10, n / 30. VLC paid the outgoing freight charge of $10. PRT paid the invoice within the discount period.Assume VLC's general ledger showed a balance in cash of $600 before the preceding events; assume VLC's balance in inventory was also $600. Which of the following statements is most true?

• A)After recording the preceding events, the balance in cash will be equal to the balance in inventory.
• B)After recording the preceding events, the balance in cash will be greater than the balance in inventory.
• C)After recording the preceding events, the balance in cash will be less than the balance in inventory.
• D)After recording the preceding events, the balance in cash will equal the balance in accounts receivable.

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Definitions:

Pseudopenis

A clitoris that is significantly enlarged to resemble a penis, found in certain species such as the spotted hyena.

Non-adaptive

Referring to traits or behaviors that do not provide a survival or reproductive advantage to an organism.

Variable Life Insurance

A type of insurance policy that does not allow for the premium or minimum coverage on one’s life to change but allows one to switch the savings from among money markets or various forms of stock.

Universal Life Insurance

A type of insurance policy that is flexible and allows one to raise or reduce premiums and the amount of coverage on one’s life.