The Financial Statements for Warren Company Show the Following: Cost

question 80

Multiple Choice

The financial statements for Warren Company show the following: Cost of goods sold $725,000
$$\begin{array} { | l | r | r | } \hline & \text { Beginning Balance } & \text { Ending Balance } \\\hline \text { Merchandise Irventory } & \$ 45,000 & \$ 56,000 \\\hline \text { Accounts Receivable } & 53,000 & 50,000 \\\hline \text { Accounts Payable } & 37,000 & 42,000 \\\hline\end{array}$$
Based on this information,cash paid for merchandise was

• A) $736,000
• B) $719,000
• C) $731,000
• D) $741,000

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Definitions:

U.S. Government Securities

Instruments for raising funds issued by the Treasury Department of the United States to support the federal government's expenditures.

Deposits

Deposits refer to the funds that customers place into their bank accounts, which can include savings, checking, and other types of accounts.

Required Reserve Ratio

The fraction of deposits that regulators require a bank to hold in reserve and not lend out.

Checkable Deposits

Bank account balances that can be withdrawn using checks, debit cards, or electronic transfers.