Carter Company Reports the Following If Cost of Goods Sold for the Year Is $210,000

question 134

Multiple Choice

Carter Company reports the following: $$\begin{array} { l c c } & \text { End of Year } & \text { Beginning of Year } \\\text { Inventory } & \$ 25,000 &\$40,000 \\\text { Accounts Payable } & 30,000 & 10,000\end{array}$$ If cost of goods sold for the year is $210,000, the amount of cash paid to suppliers is

• A)$215,000.
• B)$205,000.
• C)$175,000.
• D)$245,000.

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Definitions:

Mutual Interdependence

A situation in oligopoly markets where the actions of one firm significantly affect the outcomes of other competing firms.

Price Policy

The strategy or practices adopted by a company, organization, or government to set the selling price of products or services.

Perfectly Elastic Demand

Product or resource demand in which quantity demanded can be of any amount at a particular product or resource price; graphs as a horizontal demand curve.

Herfindahl Index

A measure of market concentration used to gauge the level of competition within an industry by calculating the sum of the squares of the market shares of each firm.