A Company Using the Periodic Inventory System Has Merchandise Inventory

question 38

Multiple Choice

A company using the periodic inventory system has merchandise inventory costing $210 on hand at the beginning of a period. During the period, merchandise costing $635 is purchased. At year-end, merchandise inventory costing $160 is on hand. The cost of merchandise sold for the year is

• A) $795
• B) $685
• C) $265
• D) $635

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Definitions:

Coercion

The act of compelling someone to act in a certain way by use of force or threats, often rendering any resulting agreement voidable.

Scienter

The knowledge or intent to deceive, manipulate, or defraud, used as a criterion to establish liability in fraud and securities litigation.

Annulled

A legal declaration that invalidates a marriage, contract, or another legal agreement, making it as though it never existed.

Intimidation

Intimidation is the act of making others fear that they will suffer harm or adverse consequences, often used to influence behavior or decisions against their will.