Beginning Inventory Is Valued at $7,000, Purchases Are $15,000 and Ending

question 77

Multiple Choice

Beginning inventory is valued at $7,000, purchases are $15,000 and ending inventory is valued at $9,000. Cost of goods sold is:

• A)$23,000.
• B)$16,000.
• C)$30,000.
• D)$13,000.

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Definitions:

Adjusting Entries

Fiscal period closing entries in accounts to properly assign incomes and expenditures to the interval in which they factually took place.

Prepaid Insurance

An asset account that represents insurance premiums paid in advance, covering future periods.

Depreciation

Depreciation is the accounting process of allocating the cost of a tangible asset over its useful life, recognizing it as an expense.

Accrued Salaries

Salaries that have been earned by employees but have not yet been paid by the company.