Refer to the Following Trial Balance

question 134

Multiple Choice

Refer to the following trial balance. How much is the gross profit?

• A)$155,000
• B)$80,000
• C)$230,000
• D)$75,000

---

Definitions:

Working Capital Management

Planning and managing the firm’s current assets and liabilities.

Inventory

Raw materials, work-in-progress, and finished goods that are considered assets and intended for sale in the ordinary course of business.

Capital Structure

The mix of a company's long-term debt, specific short-term debt, common equity, and preferred equity that it uses to finance its overall operations and growth.

Accounts Receivable

Amounts payable to a firm by its buyers for items or services that have been supplied but are still unpaid.