A Company Reported the Following Information for Its Most Recent

question 12

Multiple Choice

A company reported the following information for its most recent year of operation: purchases,$100,000;beginning inventory,$20,000;and cost of goods sold,$110,000.How much was the company's ending inventory?

• A)$10,000.
• B)$20,000.
• C)$15,000.
• D)$30,000.

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Definitions:

Tenant-in-Common

A form of co-ownership where each owner holds an undivided interest in property without the right of survivorship, meaning upon death their share can be left to heirs or specified in a will.

Fee Simple Ownership

A type of freehold ownership where the owner has the most complete ownership in the property, including the land and any structures on it, subject to government regulations.

Joint Tenants

Joint tenants are co-owners of property under a legal arrangement where each owns an undivided interest, and upon death, the interest automatically transfers to the surviving joint tenant(s).

Survivorship

Survivorship is a legal principle referring to the right of a surviving joint owner to inherit a shared property in its entirety upon the death of the other joint owner(s).