A Retailer Uses a Stock-Counting-Based Physical Inventory System

question 63

Multiple Choice

A retailer uses a stock-counting-based physical inventory system.Its beginning inventory on January 1 is 370 units and total purchases in January are 155 units.Sales for January are 265 units.A physical count of goods as of February 1 reveals 243 units.Stock shortages for the period equal _____.

• A)10
• B)17
• C)29
• D)98

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Definitions:

Callable Bonds

A type of bond that can be redeemed by the issuer before its maturity date at a predetermined price.

Call Price

The price at which a bond or a preferred stock can be redeemed by the issuer before its maturity date.

Interest Rates

The price of borrowing money, expressed as a percentage of the amount borrowed, set by lenders as compensation for the risk and the opportunity cost of lending.

Floating-rate Bonds

Bonds with a variable interest rate that adjusts periodically in accordance with a benchmark interest rate or index.