Stockton-Meadows Incorporated Reports an Increase in Accounts Payable of $9,200

question 105

Multiple Choice

Stockton-Meadows Incorporated reports an increase in Accounts Payable of $9,200 and an increase in inventory of $45,000 for the current year. Accounts Payable relates solely to the purchase of merchandise. Sales on account were $532,100 and cost of goods sold was $358,000. The payments to suppliers for inventory during the period were:

• A)$393,800.
• B)$303,800.
• C)$412,200.
• D)$322,200.

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Definitions:

Price Mechanism

The process by which the forces of demand and supply determine the prices of goods and services and allocate resources in an economy.

Capitalism

An economic system in which private individuals and businesses own capital goods and the production of goods and services is based on supply and demand in the market.

Economic System

The structured way in which a country or region organizes its economic activities and allocates resources.

Cultural Revolution

The Cultural Revolution was a socio-political movement in China, led by Mao Zedong from 1966 until 1976, aimed at preserving Chinese Communism by purging remnants of capitalist and traditional elements from Chinese society.