Assuming That Net Cost of Purchases Was $116,000 During the Year

question 84

Multiple Choice

Assuming that net cost of purchases was $116,000 during the year and that ending merchandise inventory was $2,000 less than the beginning merchandise inventory of $25,000,how much was cost of goods sold?

• A) $139,000
• B) $143,000
• C) $118,000
• D) $93,000

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Definitions:

Control Procedures

Actions and policies implemented by an organization to ensure the integrity of its financial and operational processes.

Monitoring

The continuous observation, checking, and adjustment of a process or performance by systematically tracking key metrics or activities.

Reasonable Assurance

A high level of certainty provided through internal controls and procedures to prevent and detect errors or fraud in financial reporting.

Vulnerabilities

Weaknesses or flaws in a system that can be exploited to compromise its security or functionality.