A Company That Has Operated with a 30% Average Gross

question 22

Multiple Choice

A company that has operated with a 30% average gross profit ratio for a number of years had $110,000 in net sales during the first quarter of this year. If it began the quarter with $28,000 in inventory at cost and purchased $75,000 of merchandise during the quarter, its estimated ending inventory by the gross profit method is

• A) $20,000
• B) $21,000
• C) $24,000
• D) $25,000
• E) $26,000

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Definitions:

OSH Act

The Occupational Safety and Health Act, a law passed to ensure safety and healthy work conditions by setting and enforcing standards.

General-Duty Clause

A provision that mandates employers provide workers with a workplace free from recognized hazards that could cause death or serious harm.

Reasonable Accommodation

Adjustments or modifications provided by an employer to enable employees with disabilities to perform their job functions.

Undue Hardship

A term used to describe significant difficulty or expense incurred by an employer in accommodating an employee's medical or religious needs under laws such as the Americans with Disabilities Act (ADA).