During Its First Year of Business, XYZ Inc

question 78

Multiple Choice

During its first year of business, XYZ Inc. purchased $1,600 of supplies. By the end of the year, only $500 of supplies remain in the supply cabinet. Determine the amount to be reported in the Supplies account in the Adjusted Trial Balance section of the worksheet prepared on December 31.

• A)$500
• B)$1,600
• C)$1,100
• D)$2,100

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Definitions:

Book Value

The net value of a company's assets, subtracting liabilities from the total assets, often used to determine a company's worth.

Pac-man Defence

A strategy used by a company facing a hostile takeover attempt, where it turns around to try to acquire the company that initially targeted it.

Counter-offer

A response to an original offer, modifying its terms in hopes of reaching an agreement that's more favorable to the responder.

Shares

Financial instruments that represent ownership in a company or financial asset, often entitling the shareholder to a portion of the profits.