Given the Following Complete List of Balances,what Will Be the Total

question 107

Multiple Choice

Given the following complete list of balances,what will be the total credits in the trial balance,assuming no errors exist in the accounts? Note: The accounts payable records were damaged by a flood,and the company is not certain what the correct balance should be. $\begin{array}{lll}\text { 1. Retained Earnings } & \$ 28,000 \\\text { 2. } \text { Merchandise Inventory } & 9,000 \\\text { 3. } \text { Accumulated Depreciation } & 5,000 \\\text { 4. Sales } & 42,000 \\\text { 5. Selling Expenses } & 11,000 \\\text { 6. Accounts Receivable } & \$ 7,000 \\\text { 7. Cost of Goods Sold } & 22,000 \\\text { 8. } \quad \text { Accounts Payable } & ? \\\text { 9. Cash } & 5,000 \\\text { 10. Equipment } & 33,000\end{array}$

• A)$72,000
• B)$69,000
• C)$58,000
• D)$87,000
• E)Due to the damage of the accounts payable records,it is impossible to determine the amount of the total credits on the trial balance.

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Definitions:

Long-term Debt

Borrowings that are due for repayment after more than one year, used to finance a company's operations and growth.

Cash Budget

A financial plan that estimates cash inflows and outflows over a specific period, typically used by businesses to manage liquidity and ensure they can meet their cash requirements.

Short-term Financial Management

The practice of managing a company's financial activities that are expected to be resolved within a year.

Carrying Costs

The expenses incurred by holding inventory, including storage, insurance, and taxes, over a certain period.