Keen Company's Accounting Records Indicated the Following Information: a Physical

question 93

Multiple Choice

Keen Company's accounting records indicated the following information: A physical inventory taken on December 31, 2010, resulted in an ending inventory of $700,000.Keen's gross profit on sales has remained constant at 25% in recent years.Keen suspects some inventory may have been taken by a new employee.At December 31, 2010, what is the estimated cost of missing inventory?

• A)$50,000.
• B)$150,000.
• C)$200,000.
• D)$250,000.

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Definitions:

Statement

A written or documented representation of facts or opinions, especially financial in nature.

Discussion Memorandum

A document prepared to outline topics or issues for discussion, often used in accounting and policy setting environments.

International Accounting Standard

It refers to standards in financial reporting that were issued by the International Accounting Standards Board (IASB) to ensure transparency and comparability across international boundaries.