Which of the Following Amounts Would Be Reported as Merchandise

question 4

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 $120 and the current replacement cost is $80?

• A) $200
• B) The average of $80 and $120
• C) $120
• D) $80

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Definitions:

Eggs

Reproductive cells produced by female organisms in many species, including birds, reptiles, amphibians, most fish, and certain mammals; also, a common food source.

Prereproductive Individuals

Members of a population who are at a life stage before they have reached sexual maturity and are capable of reproduction.

Fertility Rate

The average number of children born to a woman over her lifetime within a population.

Population

A group of individuals of the same species living in the same area and capable of interbreeding.