On December 1, 2010, Karr Company Purchased Inventory for $55,000

question 24

Short Answer

On December 1, 2010, Karr Company purchased inventory for $55,000. On December 31, 2010, the replacement cost of that inventory is $57,000. At what amount would inventory be measured on the December 31, 2010 balance sheet?

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Definitions:

Disbursements

The act of paying out money from a fund or account, typically for expenses or investments.

Financing

The process of providing funds for business activities, making purchases, or investing, which can come through various means like loans, equity investments, or credits.

Cash Disbursements

Outflows of cash for expenses, asset acquisitions, or other payments by a business during a specific period.

Operating Expenses

Recurring expenses related to the normal operations of a business, such as salaries, rent, and utilities.