All Purchases of Inventory Are for Cash

question 15

Multiple Choice

All purchases of inventory are for cash. If inventory at the beginning of the year is $63,000 and at the end is $88,000 and the cost of sales is $200,000, the cash paid for inventory purchased for the year is:

• A) $225,000
• B) $200,000
• C) $175,000
• D) none of the above

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Definitions:

Franchisee

An individual or company that has obtained the rights to use a brand's name, products, and processes to sell goods or services.

Direct Investment

The purchase of a substantial stake in a foreign company or the establishment of business operations in a foreign country, such as a factory or other facility.

Greatest Potential Risk

Refers to the highest level of uncertainty or danger that could impact the success or existence of a project or investment.

Direct Investment

An investment in the form of a controlling ownership in a business in one country by an entity based in another country.