The Following Information Is Available from the Trial Balance of Valentines

question 9

Multiple Choice

The following information is available from the trial balance of Valentines company as at 31 Dec Year 3:
$$\begin{array} { l c c } & \text { Debit } & \text { Credit } \\& £ & £ \\\text { Sales revenue } & & 110,000\\\text { Inventory at 31st Dec Year 1 } & 7,000 \\\text { Purchases } & 18,750 &\end{array}$$

Closing inventory as at 31st Dec year 3 is £5,250.Calculate the cost of goods sold.

• A) £31,000
• B) £20,500
• C) £25,750
• D) £20,750

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Definitions:

Involuntary Dissolution

The forced termination of a corporation or partnership by a court order, often due to failure to comply with legal requirements or bankruptcy.

Articles of Incorporation

Official documents filed with a government body to legally document the creation of a corporation.

Directors' Power

The authority granted to the board of directors of a company to make decisions on behalf of the company within the scope of their roles.

Tender Offer

A financial term referring to a public bid by a person or company proposing to buy shares from shareholders of a public company at a specified price within a certain time.