Williams Inc

question 35

Multiple Choice

Williams Inc.had the following balances and transactions during 2014: The company maintains its records of inventory on a perpetual basis using the first-in,first-out method.Calculate the amount of ending Merchandise Inventory on December 31,2014 using the lower-of-cost-or-market rule.

• A)$1,800
• B)$2,100
• C)$2,450
• D)$1,400

---

Definitions:

Expenses

Costs incurred in the process of earning revenue, typically classified as operating or non-operating expenses.

Revenue

The total income generated from normal business operations, including the sale of goods and services before any expenses are deducted.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the owner's claim on the company's assets.

Assets

Resources owned by a business or individual with economic value or future benefits.