The Following Information Is Available for the Past Month for a Retail

question 74

Multiple Choice

The following information is available for the past month for a retail store: What is the ending inventory at cost using the basic retail method? (Round cost-to-retail ratios to four decimal places.)

• A)$24,415
• B)$21,500
• C)$55,000
• D)$23,216

---

Definitions:

Balance Sheet

A financial report that captures a company's financial status at a particular moment, detailing its assets, liabilities, and shareholders' equity.

IFRS

International Financial Reporting Standards, a set of accounting standards developed by the International Accounting Standards Board (IASB) that guide the preparation and presentation of financial statements on a global scale.

GAAP Format

The presentation of financial statements in accordance with Generally Accepted Accounting Principles, ensuring consistency and comparability.

Fair Value

The estimated price at which an asset could be bought or sold in a current transaction between willing parties, other than in a liquidation sale.