Net Sales Are $2,700,000, Beginning Total Assets Are $700,000, and the Asset

question 266

Multiple Choice

Net sales are $2,700,000, beginning total assets are $700,000, and the asset turnover is 3.0. What is the ending total asset balance?

• A) $900,000
• B) $1,100,000
• C) $700,000
• D) $800,000

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Definitions:

Critical Thinkers

Individuals who actively and skillfully analyze, assess, and reconstruct their thinking, thereby enhancing the quality of their thoughts and decisions.

Reasonable Explanations

Logical or rational interpretations or accounts for phenomena, actions, or events based on evidence and reasoning.

Critical Thinkers

Individuals who actively and skillfully analyze, assess, and reconstruct their thinking, thereby making informed decisions.

Fewest Assumptions

A principle suggesting that the simplest explanation, requiring the least speculative assumptions, is often the most accurate.