Suppose the Fruit Group Buys a Kiwi for

question 68

Multiple Choice

Suppose The Fruit Group buys a kiwi for $.10 and sells the kiwi for $.50. The cost of goods sold would be:

• A) $.10
• B) $.40
• C) $.05
• D) $.50

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities; represents the owners' share.

Current Assets

Current assets are all assets that a company expects to convert to cash or use within one year, such as inventory, accounts receivable, and cash.

Stockholders' Equity

Ownership equity represented by the leftover interest in a corporation's assets once its liabilities have been subtracted.

Account Receivable

Represents money owed to a business by its customers for goods or services delivered but not yet paid for.