Adams Consultancy Has the Following Account Balances at the End

question 8

Multiple Choice

Adams Consultancy has the following account balances at the end of the current accounting period. The normal gross profit percent is 40%. What is the estimated ending inventory as determined by the gross profit method?

• A)$190,000
• B)$415,000
• C)$196,000
• D)$490,000

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Definitions:

Agricultural Production

The process and outcome of cultivating crops and livestock for human use and consumption.

Interest Rate

The percentage of a sum of money charged for its use, often expressed as an annual percentage.

Say's Law

A principle attributed to French economist Jean-Baptiste Say, suggesting that supply creates its own demand, meaning production inherently generates the demand for goods and services.

Consumption

The action or process of using goods and services for personal needs or desires, typically considered as a component of GDP.