During the Last Year, an Organization Had an Opening Inventory

question 62

Multiple Choice

During the last year, an organization had an opening inventory of $300,000, purchases of $980,000, sales of $1,850,000, and a gross margin of 40 percent. What is the closing inventory if the periodic inventory system is used?

• A) $170,000
• B) $280,000
• C) $300,000
• D) $540,000

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Definitions:

Involuntary Bankruptcy

A legal process initiated by creditors to force a debtor into bankruptcy proceedings, in order to recoup debts owed by liquidating the debtor's assets.

Nonprofit Organizations

Organizations that operate for charitable, educational, cultural, scientific, or social welfare purposes rather than for profit.

Means Test

An analysis conducted to determine an individual's financial eligibility for certain government assistance programs, based on income and assets.

Current Income

Current Income signifies the revenue or income generated from investments or employment within a specified current period, typically considered for personal or business financial analysis.