Metro Computer Company Had the Following Balances and Transactions During

question 26

Multiple Choice

Metro Computer Company had the following balances and transactions during 2014. What would the Cost of sales be as reported on the income statement at 31 December 2014 if the perpetual Last- In, First- Out costing method is used? (Answers are rounded to the nearest dollar.)

• A)$12 000
• B)$15 750
• C)$15 000
• D)$3 750

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Definitions:

Yield to Maturity

The total return anticipated on a bond if the bond is held until its maturity date, taking into account both interest payments and capital gain.

Zero-Coupon Bond

A debt security that does not pay interest (coupon) during its life but is traded at a deep discount, offering a profit at maturity when the bond is redeemed for its full face value.

Market Price

Market Price is the current price at which an asset or service can be bought or sold in a competitive marketplace.

Treasury Bond

A long-term, interest-bearing security issued by the U.S. government, considered one of the safest investments due to government backing.