On January 1,2011,the General Ledger of Global Corporation Included Supplies

question 45

Multiple Choice

On January 1,2011,the general ledger of Global Corporation included supplies inventory of $1,000.During 2011,supplies purchases amounted to $5,000.A physical count of inventory on hand at December 31,2011 determined that the supplies inventory was $1,200.How much is the 2011 supplies expense?

• A)$6,000
• B)$5,200
• C)$4,800
• D)$1,000

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Definitions:

Valuation Approach

The methodologies and procedures used to determine the value of an asset, a company, or a financial instrument.

Expected Earnings

The anticipated profit or income generated by an investment or a business activity in a future period.

Disadvantages

The drawbacks or unfavorable aspects associated with a particular decision, action, or strategy.

P/E Ratios

Price-to-Earnings Ratio, a valuation measure comparing the current share price of a company to its per-share earnings, indicating the dollar amount an investor can expect to invest to receive one dollar of the company's earnings.