Axle IncUpdates Its Inventory Perpetually

question 38

Multiple Choice

Axle Inc.updates its inventory perpetually.Its beginning inventory is $35,000,goods purchased during the period cost $120,000,and the cost of goods sold for the period is $140,000.What is the amount of the ending inventory?

• A) $45,000
• B) $20,000
• C) $25,000
• D) $15,000

---

Definitions:

Cross-Rate

The exchange rate between two currencies, calculated based on their common exchange rates with a third currency.

Exchange Rate

The rate at which one currency can be exchanged for another, determining how much of one currency is needed to purchase a unit of another currency.

Spot Trade

An agreement to trade currencies based on the exchange rate today for settlement in two days.

Exchange Rate

The rate at which one currency can be exchanged for another, usually used in international trade and finance.