Retail Company Reported the Following Amounts on Its 20B Income

question 99

Multiple Choice

Retail Company reported the following amounts on its 20B income statement: Purchases, $45,000; Beginning 20B inventory, $15,000; and Cost of goods sold, $50,000. What was the 20B ending inventory?

• A) $27,000
• B) $10,000
• C) $25,000
• D) $26,000

Distinguish the accounting treatments for stock investments based on the level of influence (insignificant, significant, and controlling).

Understand the accounting for realized and unrealized gains or losses for different types of securities.

Identify how changes in fair value of investments impact financial statements and the differences between available-for-sale, held-to-maturity, and trading securities.

Grasp the concept of comprehensive income and its components.

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Definitions:

Output

Refers to the total quantity of goods or services produced by an individual, company, or economy.

Expand

The process of increasing the scale, scope, or reach of an operation, business, or system, often aiming for growth or diversification.

Fixed Cost

Costs that do not vary with the level of output or activity, remaining constant regardless of production volume.