The Trade Payables Account Has a Beginning Balance of $1,000

question 90

Multiple Choice

The trade payables account has a beginning balance of $1,000 and we purchased $3,000 of inventory on credit during the month. The ending balance was $800. How much did we pay our creditors during the month?

• A) $2,800
• B) $3,000
• C) $3,200
• D) $4,800

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Definitions:

Call Option

A call option is a financial contract that gives the buyer the right, but not the obligation, to buy an asset at a specified price within a predetermined period.

Stock Price

The present selling or buying price of a company's stock in the market.

Preferred Stock

A class of ownership in a corporation with a higher claim on its assets and earnings than common stock.

Par Value

A nominal or face value assigned to a share of stock by the company's charter, not necessarily reflecting its market value.