Given the Following Data, What Is the Cost of Purchases

question 41

Multiple Choice

Given the following data, what is the cost of purchases?
$\begin{array} { l r } \text { Sales revenue } & \$ 725,000 \\\text { Cost of goods sold } & 345,000 \\\text { Ending inventory } & 250,000 \\\text { Beginning inventory } & 120,000\end{array}$

• A) $595,000
• B) $465,000
• C) $475,000
• D) $370,000

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Definitions:

Limited Liability

A legal structure that limits the financial responsibility of an organization's owners or shareholders to the amount they have invested in the company.

Aggregate Theory

A theory in partnership law that holds that a partnership is actually a conglomeration of the partners rather than a separate legal person with its own legal identity.

Flesh and Blood

A phrase used to denote a living human being, often emphasizing common human nature or familial bonds.