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:

Issued

refers to securities, stocks, or bonds that have been officially released or sold by a company to investors.

Retained Earnings

Refers to the portion of net income left over for the business after it has paid out dividends to its shareholders.

Surplus Cash

Excess funds that a company has after covering all its operational expenses, investments, and financial obligations.

Dividends

Distributions to shareholders from a corporation, often sourced from the entity's earnings.