Inventory on January 1 and December 31 Is $46,000 and $42,000

question 10

Multiple Choice

Inventory on January 1 and December 31 is $46,000 and $42,000, respectively. Accounts payable on January 1 and December 31 are $31,000 and $29,000, respectively. During the year, cost of goods sold is $186,000. How much is the current year's cash payments to suppliers of inventory?

• A)$184,000
• B)$213,000
• C)$181,000
• D)$191,000

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Definitions:

Private Economy

A section of the economy that is owned and operated by private individuals and companies rather than the government.

Public Sector

Pertains to the part of the economy composed of both public services and public enterprises, owned and operated by the government.

Rational Expectations

The hypothesis in economics that individuals form forecasts about the future based on all available information and past experiences in an unbiased and logical manner.

Monetary Policy

The process by which the monetary authority of a country, like the central bank, controls the supply of money, often targeting an inflation rate or interest rate to ensure stability and economic growth.