All Purchases of Inventory Are for Cash

question 54

Multiple Choice

All purchases of inventory are for cash. If inventory at the beginning of the year is $63,000 and at the end $88,000 and the cost of sales is $200,000, the cash paid for inventory purchased for the year is:

• A)$175,000.
• B)$225,000.
• C)$200,000.
• D)none of the above.

---

Definitions:

Property Interest

A legal right or claim to resources or possessions, such as real estate or intellectual property.

Graze

The act of eating small quantities of food periodically or animals feeding on grass in a pasture.

Warranty Deed

A document that guarantees the seller holds clear title to a piece of real estate and has a right to sell it to the buyer.

Defects in Title

A legal issue where the seller of a property does not have the legal right to transfer ownership, or there are claims or liens against the property that affect its transfer or value.