As a Result of a Thorough Physical Inventory, Greeley Company

question 138

Multiple Choice

As a result of a thorough physical inventory, Greeley Company determined that it had inventory costing $325,000 at December 31, 2022. This count did not take into consideration the following facts: Walker Consignment currently has goods costing $47,000 on its sales floor that belong to Greeley but are being sold on consignment by Walker. The selling price of these goods is $75,000. Greeley purchased $22,000 of goods that were shipped on December 27, FOB destination, that will be received by Greeley on January 3. Determine the correct amount of inventory that Greeley should report.

• A) $325,000.
• B) $347,000.
• C) $372,000.
• D) $387,000.

Identify decision-making biases and their effects.

Understand programmed and nonprogrammed decision-making processes.

Recognize biases in perception and decision-making.

Understand the different stages of the innovation process.

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Definitions:

Accumulated

The total gathered or collected amount over a period of time, referring to various contexts such as finances, data, or materials.

Invested at

Refers to the specific time or price point at which investments are made into a financial instrument or asset.

Accounting Rate of Return

A financial metric used to assess the profitability of an investment, calculated as the average annual profit divided by the initial investment cost.

Incremental Revenue

Additional income generated from a new action or decision, beyond what would have been achieved without it.