Company Uses the Periodic Inventory Method and Offers the Following

question 145

Multiple Choice

Company uses the periodic inventory method and offers the following information:
$\begin{array} { l r } \text { Beginning inventory } & \$ 4,000 \\\text { Purchases } & \$ 120,000 \\\text { Purchase discounts } & \$ 2,400 \\\text { Purchase returns and allowances } & \$ 800\end{array}$
At the end of the period,the company does an inventory count and finds $16,000 of inventory on hand.
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Which of the following T-accounts accurately represents the first three closing entries?

• A)
• \[\begin{array}{c} { \text { Cost of goods sold } } \\
• \hline\begin{array}{ l r | l }
• \text { 1) } & & 4,000 \\
• \text { 2) } & 16,000 & \\
• \text { 3) } & & 116,800
• \end{array}\end{array}\]
• B)
• \[\begin{array}{c} { \text { Cost of goods sold } } \\
• \hline\begin{array}{ l r | l }
• \text { 1) } & 116,800 & \\
• 2 ) & 4,000 & \\
• 3 ) & & 116,000
• \end{array}\end{array}\]
• C)
• \(\begin{array}{lr|r}
• {\text { Cost of goods sold }} \\
• \hline \text { 1) } && 116,800 & \\
• \text { 2) } & & 16,000 \\
• \text { 3) } & 4,000 &
• \end{array}\)
• D)
• \(\begin{array}{lr|r}
• {\text { Cost of goods sold }} \\
• \hline \text { 1) } & 4,000 & \\
• \text { 2) } & & 16,000 \\
• \text { 3) } & 116,800 &
• \end{array}\)

Describe the heart's anatomy, including the location and function of its valves.

Understand the risk factors for cardiovascular disease, including modifiable aspects.

Describe the process and complications of atherosclerosis.

Understand the structure and function of various blood vessels within the circulatory system.

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Definitions:

Operating Leverage

An indicator of the extent to which increases in revenue lead to increases in operating profit, showing the level of fixed expenses within the financial framework of a business.

Fixed Costs

Expenses that do not change with the level of production or sales over a short period, such as rent, salaries, and insurance.

Forecasting Risk

The potential for future revenues or earnings to deviate from projected amounts due to variables that affect demand, supply, and pricing.

NPV Estimates

Calculations used to determine the Net Present Value of an investment, forecasting the difference between the present value of cash inflows and outflows.