Assume a Company Uses the Periodic Inventory System and Has

question 194

Multiple Choice

Assume a company uses the periodic inventory system and has a beginning merchandise inventory balance of $5,000,purchases of $75,000,and sales of $125,000.The company closes its records once a year on December 31.In the accounting records,the merchandise inventory account would be expected to have a balance on December 31 prior to adjusting and closing entries that was

• A) indeterminate.
• B) less than $5,000.
• C) more than $5,000.
• D) equal to $5,000.

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Definitions:

Indeterminate

A term used to describe a condition or outcome that cannot be definitively determined or predicted based on the available information.

Value of Y

Typically refers to the numerical worth or significance assigned to the variable 'Y' in mathematical or statistical contexts.

Slope

The measure of the steepness or incline of a line, often representing the rate of change of a function.

Economic Growth

An increase in the capacity of an economy to produce goods and services, compared over a period of time.