The Merchandise Inventory for Year 1 Was $100,000 and for Year

question 57

Multiple Choice

The Merchandise Inventory for Year 1 was $100,000 and for Year 2 was $94,000. The Accounts Payable account for Year 1 was $40,000 and for Year 2 was $42,000. Cost of goods sold for Year 2 was $460,000. What was the total amount for cash payments for merchandise for Year 2?

• A) $452,000.
• B) $456,000.
• C) $448,000.
• D) $84,000.
• E) $449,000.

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Definitions:

Delegation of Duties

The act of assigning specific tasks or responsibilities, originally held by one individual or group, to another.

Delegator

One who delegates his or her duties under a contract to another, called the delegatee.

Assign Contract Rights

The act of transferring one's rights and obligations under a contract to another party.

Sale of Goods

The transaction of exchanging commodities for money between two parties, under regulated legal conditions.