Assume a Business Commences Operations with Owners' Contributions of $20

question 27

Multiple Choice

Assume a business commences operations with owners' contributions of $20 000 with which it purchases an item of inventory that it later sells for $24 000.If the replacement cost of the inventory at the date of sale is $21 000 the amount the business can distribute and still maintain the same level of operations is:

• A) $0
• B) $3000
• C) $4000
• D) $1000

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Definitions:

Olive Branch Petition

A final attempt by the American colonials to avoid a full-on war with Britain by asserting their loyalty while appealing for their grievances to be addressed.

King George Iii

The King of Great Britain and King of Ireland from 1760 to 1820, whose reign included the American Revolutionary War and the loss of the American colonies.

American Loyalty

The sense of allegiance or fidelity to the United States, its principles, and its values.

Idea Of Independence

The concept that a nation, territory, or people should govern itself, free from external control or influence.