Which of the Following Amounts Would Be Reported as Merchandise

question 64

Multiple Choice

Which of the following amounts would be reported as Merchandise Inventory on the balance sheet of a company if the cost of an item is $110 and the current replacement cost is $70?

• A) $180
• B) the average of $70 and $110
• C) $110
• D) $70

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Definitions:

Money Center Banks

Large banks that borrow from and lend to governments, other banks, and corporations.

Corporations

Legal entities that are separate from their owners, with the ability to own assets, incur liabilities, and engage in business activities.

Other Banks

Financial institutions that provide a range of services including deposits, loans, and investment products, distinct from the context's primary banking entity.

Clearing House Interbank Payments System

A network used by financial institutions to send and receive payments or securities in large volumes, typically for bank-to-bank transactions.