Williams Company Had the Following Balances and Transactions During 2013

question 5

Multiple Choice

Williams Company had the following balances and transactions during 2013. What would the company's inventory amount be on the 31 December 2013 balance sheet if the perpetual FIFO method is used? (Answers are rounded to the nearest dollar.)

• A)$1 200
• B)$1 100
• C)$900
• D)$1 050

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Definitions:

Business Judgment Rule

A legal principle that protects corporate directors' decision-making from judicial review as long as the decisions are made in good faith.

Shareholder's Demand

A formal request by a shareholder, typically for corporate information or to take specific actions, under legal rights.

Court Piercing

A legal action where a court disregards the corporate entity and holds its owners personally liable for corporate debts or misconduct.

Derivative Action

A lawsuit brought by a corporation shareholder on behalf of the corporation against a third party.