Beginning and Ending Inventories Are $980 and $880, Respectively

question 27

Multiple Choice

Beginning and ending inventories are $980 and $880, respectively. The income statement debit and credit columns of the worksheet total $2,500 and $2,500, respectively, not including the adjustment amounts for beginning and ending inventories. The net income or loss for the period is:

• A) $1,860 net income.
• B) $1,860 net loss.
• C) $100 net income.
• D) $100 net loss.

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Definitions:

Substantive Law

The body of law setting out rights and duties that affect how people behave in organized social life. See also procedural law.

Criminal Law

The body of law that pertains to crime and punishment, regulating social conduct and proscribing threatening, harming, or otherwise endangering the health, safety, and moral welfare of people.

Public Law

The branch of law that governs the relationship between individuals, corporations, and the state, including constitutional, administrative, and criminal law.

Plain Meaning

A principle in legal interpretation that when the words of a statute are clear, they should be applied according to their natural and ordinary meaning.