Use the Information Below to Answer the Following Questions

question 20

Multiple Choice

Use the information below to answer the following questions:
At 1 July 2011, Epsilon Pty Ltd had 100 items of inventory which had cost $50 each. During the year ended 30 June 2012, it purchased 1500 items at a cost of $50 each. Of these, 200 were returned to the supplier as they were damaged. During the year, 1200 items were sold for $80 each, but 50 were returned by customers. Overhead expenses during the year amounted to $15,000.
-What was the value of inventory in the balance sheet at 30 June 2012?

• A) $22 500
• B) $10 000
• C) $7500
• D) $12 500.

Explain the functions and importance of legal reserve requirements in monetary policy.

Discuss the significance of the lender of last resort function of the Federal Reserve.

Understand the concept and application of net present value in capital budgeting.

Grasp the significance of the time value of money in financial decision-making.

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Definitions:

Cost Allocation

The process of identifying, aggregating, and assigning costs to cost objects, such as departments or products.

Acquisition

The process of acquiring control of another company or business asset through purchase, merger, or another method.

Independent Appraiser

A certified professional who provides an unbiased opinion on the value of an asset, often used in real estate transactions, without any direct connection to the buyer or seller.

Journal Entry

A record in accounting that represents each transaction with debits and credits in financial accounts.