The Accounting Records for the Helen Co

question 121

Multiple Choice

The accounting records for the Helen Co.show that its cost of goods sold for the year was $600,000.In addition,it had an increase in inventory of $10,000 and a decrease in accounts payable of $12,000.As a result under the direct method,the amount of cash paid to suppliers for the year was:

• A) $602,000.
• B) $610,000.
• C) $612,000.
• D) $622,000.

---

Definitions:

Dodd-Frank Wall Street Reform and Consumer Protection Act

A comprehensive piece of financial reform legislation passed in 2010 in response to the financial crisis, aimed at reducing risk in the U.S. financial system.

Reserve Requirement

The Reserve Requirement is a central bank regulation that sets the minimum amount of reserves each bank must hold to customer deposits and notes.

Financial Institutions

Organizations that provide financial services, such as banks, insurance companies, pension funds, investment companies, and credit unions, facilitating the flow of money in the economy.

Failed Banks

Financial institutions that have been unable to meet their obligations, leading to closure or takeover by a regulatory agency.