The Following Information Was Provided by the Records of RST

question 91

Multiple Choice

The following information was provided by the records of RST for the annual reporting period ended December 31,2011: $$\begin{array} { l | l | } \hline \text { Cost of goods sold (as reported on the income statement) } & \$ 170 \\\hline \text { Depreciation expense } & \$ 10 \\\hline \text { Merchandise inventory increase } & \$ 2 \\\hline \text { Goodwill amortized } & \$ 4 \\\hline \text { Accounts payable decrease } & \$ 18 \\\hline\end{array}$$ The cash paid to suppliers was:

• A)$172
• B)$188
• C)$190
• D)$200

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Definitions:

Catastrophic

Involving or causing sudden great damage or suffering, typically on a large scale or involving a natural disaster.

Drought

Drought is a prolonged period of abnormally low rainfall, leading to a shortage of water that adversely affects crops, animals, and human populations.

Earthquakes

Natural seismic events resulting from the sudden release of energy in the Earth's crust, leading to ground shaking and sometimes causing significant damage and loss of life.

Secondary Succession

The ecological recovery process that occurs in an environment after a disturbance that didn't remove the soil.