Wetzel Company Has the Following Accounts and Balances at the End

question 125

Multiple Choice

Wetzel Company has the following accounts and balances at the end of the fiscal year: What is the total amount of liabilities at the end of the year?

• A)$55,500
• B)$110,500
• C)$205,500
• D)$176,000

---

Definitions:

Direct Costs

Expenses that can be directly attributed to the production of specific goods or services, such as raw materials and direct labor.

Liability Insurance

An insurance policy that provides protection against claims resulting from injuries and damage to people and/or property.

Merchandising Firm

A business that purchases finished goods for resale, making profit through the markup of those goods.

Period Costs

Costs that are taken directly to the income statement as expenses in the period in which they are incurred or accrued.