Quigley Company's Records Indicate the Following Information for the Year

question 13

Multiple Choice

Quigley Company's records indicate the following information for the year: On December 31, a physical inventory determined that ending inventory of ₤720,000 was in the warehouse. Quigley's gross profit on sales has remained constant at 30%. Quigley suspects some of the inventory may have been taken by some new employees. At December 31, what is the estimated cost of missing inventory?

• A) ₤120,000
• B) ₤240,000
• C) ₤360,000
• D) ₤840,000

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Definitions:

Operations to Net Income

An analysis or measure that illustrates how operating activities contribute to a company's net income.

Intracompany Comparisons

Intracompany comparisons involve analyzing the financial performance and operational efficiencies within different segments or departments of the same company.

Intercompany Comparisons

The evaluation and analysis of financial statements and performance between different departments or subsidiaries within the same company.

Consistency

An accounting principle that requires companies to apply the same accounting methods and procedures from period to period.