A Corporation Reports the Following Year-End Balance Sheet Data

question 108

Multiple Choice

A corporation reports the following year-end balance sheet data.

-The company's working capital equals:

• A)$80,000
• B)$155,000
• C)$75,000
• D)$300,000
• E)$190,000

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Definitions:

Accounts Payable

Liabilities of a business that are obligations to pay creditors for goods and services purchased on credit.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit account column totals that are equal.

Perpetual Inventory System

A systematic approach to maintaining accurate inventory records that adjust in real-time with each purchase or sale of inventory items.

Freight-In

The cost of transporting goods into a business, treated as part of the cost of inventory in the calculation of the cost of goods sold.