A Merchandiser Uses a Perpetual Inventory System

question 21

Multiple Choice

A merchandiser uses a perpetual inventory system.The beginning Owner,Capital balance of the merchandiser was $120,000.During the year,Sales Revenue amounted to $80,000,Cost of Goods Sold was $45,000,and all other expenses totaled $12,000.Owner withdrawals were $27,000.There were no new capital contributions during the year.The ending balance of Owner,Capital would be ________.

• A) $143,000
• B) $116,000
• C) $170,000
• D) $120,000

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Definitions:

Friendly Skepticism

An attitude of openness to new ideas or claims but with a readiness to critically evaluate their validity or truth.

New Ideas

Fresh or innovative thoughts, concepts, or perceptions not previously thought of or recognized.

Critical Thinker

An individual who engages in analysis, evaluation, and synthesis of information to form reasoned judgments.

Systematically Evaluates

The methodical assessment or examination of systems, processes, or materials to draw conclusions.