If Cost of Goods Sold Is $145,000 and the Beginning

question 116

Multiple Choice

If Cost of Goods Sold is $145,000 and the beginning and ending Inventory balances are $18,000 and $13,000,respectively,inventory purchases equal:

• A) $145,000.
• B) $140,000.
• C) $150,000.
• D) $132,000.

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Definitions:

Tax Advantages

Financial benefits that arise from the application of tax laws, such as deductions or credits, which reduce tax liability.

Shareholders

Individuals or entities that legally own one or more shares of stock in a public or private corporation.

Incorporation

Incorporation is the process of legally forming a corporation or company, which is then recognized as a separate legal entity from its owners.

Derivative Action

A lawsuit in which certain shareholders are given the right to launch a civil action against the directors on behalf of an injured corporation; also called a representative action.