Use the Following Information for Questions

question 70

Multiple Choice

Use the following information for questions.
A company just starting its business made the following four inventory purchases in June: On June 25, the company made its first sale when a local customer purchased 500 units for $3,500. The company uses a perpetual inventory system.
-Using the average cost formula, the cost of the ending inventory on June 30 is

• A) $670.00.
• B) $690.50.
• C) $1,645.55.
• D) $1,675.00.

Understand the concept of the current ratio and its significance in assessing a company’s liquidity.

Acknowledge the role and preparation of adjusting entries in the accounting process.

Comprehend the function and benefits of using a worksheet in the accounting cycle.

Appreciate the significance of closing entries and their effect on the accounts.

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Definitions:

U.S. Civil War

The conflict between the Northern states (Union) and Southern secessionist states (Confederacy) from 1861 to 1865 over issues including states' rights and slavery.

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A global conflict that took place primarily in Europe from 1914 to 1918, involving many of the world's great powers divided into two opposing alliances: the Allies and the Central Powers.

Kepler

Johannes Kepler was a German mathematician, astronomer, and astrologer who is best known for his laws of planetary motion, contributing significantly to the scientific revolution.

Sherrington's Work

Refers to the contributions of Sir Charles Scott Sherrington, who made foundational discoveries in the field of neurophysiology, particularly regarding the functioning of neurons and synaptic transmission.