Your Ledger Accounts Have the Following Balances What Is the Balance of the Debit and Credit Columns

question 17

Multiple Choice

Your ledger accounts have the following balances: $\begin{array}{|l|r|}\hline \text { Cash } & 10,000 \\\hline \text { Creditors } & 85,000 \\\hline \text { Capital } & 337,000 \\\hline \text { Equipment } & 250,000 \\\hline \text { Sales } & 325,000 \\\hline \text { Inventory } & 50,000 \\\hline \text { Cost of Sales } & 250,000 \\\hline \text { Drawings } & 25,000 \\\hline \text { Expenses } & 52,000 \\\hline \text { Debtors } & 110,000 \\\hline\end{array}$ What is the balance of the debit and credit columns of the trial balance?

• A)$747 000
• B)$525 000
• C)$994 000
• D)$785 000

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Definitions:

Sales

The transactions in which goods or services are transferred from seller to buyer for money or other compensation.

Cost of Goods Sold

Costs directly linked to the creation of products sold by a firm, such as the expenses for materials and workforce.

Income from Operations

The profit generated from a company's regular, core business activities, excluding non-operating income and expenses.