Use the Information Below to Answer the Following Questions -The Amount of Cash Paid to Suppliers During the Year

question 41

Multiple Choice

Use the information below to answer the following questions:
$\begin{array}{lr}\text { Inventory } 1 \text { July } 2011 & 20000 \\ \text { Inventory 30 June 2012 } & 30000 \\ \text { Accounts payable 1 July 2011 } & 38000 \\ \text { Accounts payable 30 June 2012 } & 47000 \\ \text { Cost of goods sold } & 500000\end{array}$
-The amount of cash paid to suppliers during the year was:

• A) $10 000
• B) $501 000
• C) $510 000
• D) $519 000.

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Definitions:

Journal Entry

A record in the books of accounts that documents a financial transaction, showing the debit and credit effects.

Interest Expense

Costs incurred by an entity for borrowed funds, which are typically reported on the income statement within the financing or operating sections.

Notes Payable

A written promise to pay a specified amount of money, typically with interest, by a certain date, recorded as a liability on the balance sheet.

Cash

Refers to currency or assets that can rapidly be converted to currency, used by businesses for transactions and considered a current asset on the balance sheet.