On June 19,2014,a Fire Destroyed the Entire Uninsured Merchandise Inventory

question 132

Multiple Choice

On June 19,2014,a fire destroyed the entire uninsured merchandise inventory of the Shelf Merchandising Company.The following data are available:

What is the approximate inventory loss as a result of the fire?

• A)$19,200
• B)$27,200
• C)$34,000
• D)$58,000

---

Definitions:

Account Receivable

Amounts owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

Working Capital

The difference between a company's current assets and current liabilities, indicating the short-term liquidity of a business.

Supplies

Items used in the day-to-day operations of a business, often consumable in nature, such as office supplies, manufacturing materials, or maintenance necessities.

Equipment

Tangible property used in the operations of a business, such as machinery and tools, which are not intended for sale.