Malcom,Inc.had the Following Balances and Transactions During 2017

question 79

Multiple Choice

Malcom,Inc.had the following balances and transactions during 2017:

What would be reported as Cost of Goods Sold on the income statement for the year ending December 31,2017 if the perpetual inventory system and the first-in,first-out inventory costing method are used?

• A)$14,350
• B)$19,750
• C)$31,550
• D)$24,670

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Definitions:

Capital Balances

The amount of money that the owners of a business have contributed or accumulated in the business over time.

Capital Deficiency

A scenario in which a firm's short-term obligations surpass its short-term resources, suggesting possible financial trouble.

Liquidation

The process of bringing a business to an end and distributing its assets to claimants, often conducted when a company is insolvent.

Convert

To change something into a different form or properties, often used in financial contexts such as converting currencies or securities.