Fit Apparel Company Reports the Following Data for Its First

question 192

Multiple Choice

Fit Apparel Company reports the following data for its first year of operation. What is the cost of goods sold?

• A)$650,000
• B)$835,000
• C)$580,000
• D)$670,000

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Definitions:

Accounts Receivables

Sums due to a company from its customers for products or services rendered but not yet compensated for.

Investing Activity

Operations concerning the buying and selling of long-term assets and other financial investments that do not qualify as cash equivalents.

Suppliers

Entities or individuals that provide goods or services to another entity or individual, usually in a business-to-business context.

Time Period Assumption

An accounting principle that the life of a business can be divided into discrete time periods, such as months and years, for reporting purposes.