If a Company Using a Periodic Inventory System Has Beginning

question 118

Multiple Choice

If a company using a periodic inventory system has beginning inventory of 15 units,purchases an additional 40 units,has ending inventory of 10 units,and sells 45 units,what is the company's number of units available for sale?

• A)55 units
• B)45 units
• C)65 units
• D)60 units
• E)15 units

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Definitions:

Equivalent Single Discount

A single, consolidated discount rate that is equivalent in value to a series of multiple discounts applied successively.

Complement Rate

A rate equal to 100% minus the discount rate; used with the complement method in determining trade or cash discounts.

Net Price

The actual price paid for a product or service after deducting any discounts, rebates, or promotions.

Complement Method

Method of computing the net price directly, using the complement of the trade discount rate.