Davis Corporation Had the Following Transactions in Their First Year

question 76

Multiple Choice

Davis Corporation had the following transactions in their first year of operations: What is the cash balance at year end?

• A)$150,000
• B)$170,000
• C)$210,000
• D)$280,000

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Definitions:

Ending Inventory

The cost of merchandise ready to be sold at the close of an accounting cycle, found by taking the initial inventory, adding purchases, and subtracting the cost of goods sold.

Inventory Valuation

The method used to assign a monetary value to inventory, which affects the cost of goods sold and gross profit.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, often used in cost accounting.

Ending Inventory

The aggregate worth of items on offer at the termination of an accounting cycle.