Beginning and Ending Inventories Are $900 and $800,respectively

question 91

Multiple Choice

Beginning and ending inventories are $900 and $800,respectively.The income statement debit and credit columns of the worksheet total $2,500 and $2,500,respectively,not including the adjustment amounts for beginning and ending inventories.The net income or loss for the period is:

• A)$150 net income.
• B)$150 net loss.
• C)$100 net income.
• D)$100 net loss.

---

Definitions:

Incremental Borrowing Rate

The interest rate a lessee would have to pay to borrow under a similar term, and with similar security, the funds necessary to obtain an asset lease.

Net Position

The difference between the total assets and total liabilities of an entity, representing its net worth or equity value.

Fund Balance

The net assets of a government fund, calculated as the difference between the fund's assets and liabilities, indicating the financial health or resources available to the fund.