Haley's Florist Shop Has the Following Account Balances at the End

question 115

Multiple Choice

Haley's Florist Shop has the following account balances at the end of the current accounting period. A normal gross profit percent is 30%. What is the estimated ending inventory as determined by the gross profit method?

• A)$100,890
• B)$28,110
• C)$63,410
• D)$65,590

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Definitions:

Interest Rate Risk Premium

The extra return investors demand for holding an interest-bearing asset, compensating them for the risk of interest rate fluctuations.

Coupon Rate

The annual interest rate paid by a bond expressed as a percentage of the bond's face value.

YTM

Yield to Maturity, the total return anticipated on a bond if held until it matures.

Premium Bonds

Bonds sold for more than their face value due to offering interest rates higher than the current market average.