Fertilizer Incorporated Reports an Increase in Accounts Payable of $9,200

question 51

Multiple Choice

Fertilizer Incorporated reports an increase in Accounts Payable of $9,200 and an increase in inventory of $45,000 for the current year.Accounts Payable relates solely to the purchase of merchandise.Sales on account were $532,100 and cost of goods sold was $358,000.The total purchases of merchandise for the period were:

• A) $174,100
• B) $313,000
• C) $358,000
• D) $403,000

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Definitions:

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit.

Bankruptcy

A legal proceeding involving a person or business that is unable to repay outstanding debts. The process begins with a petition filed by the debtor, or on behalf of creditors.

Authorized Shares

The legally allowed maximum issuance of shares by a corporation, as stated in its charter.

Articles of Incorporation

Legal documents filed with a governmental body to legally document the creation of a corporation.