Wolfe Inc. Wolfe Inc. Reports These Account Balances at January 1, 2015

question 136

Multiple Choice

Wolfe Inc.
Wolfe Inc. reports these account balances at January 1, 2015:

-See the account balances for Wolfe Inc. On January 31, Wolfe collected $12,000 of its accounts receivable and paid $11,000 on its note payable. In Wolfe's
Trial balance prepared on January 31, 2015, the total of the credit column is:

• A) $297,000
• B) $287,000
• C) $286,000
• D) $275,000

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Definitions:

Operating Activities

Transactions and events that affect the net income of a business, related to its principal revenue-producing activities.

Financing Activity

Activities that result in changes in size and composition of the contributed equity and borrowings of the entity, reflected in the cash flow statement.

Inventory

Inventory encompasses the raw materials, work-in-progress, and finished goods that a company holds at any time, representing a crucial asset that is sold to generate revenue.

Treasury Stock

Shares that were issued and later reacquired by the issuing company, reducing the amount of stock outstanding on the open market.