Assume Beta Company Uses the Perpetual Inventory Method and Engaged

question 41

Multiple Choice

Assume Beta Company uses the perpetual inventory method and engaged in the following transactions:
1) Purchased $5,000 of merchandise on account under terms 2/10, n/30.
2) Returned $600 (list price) of merchandise to the supplier before payment was made.
3) Paid the account payable within the discount period.
4) Sold the merchandise for $6,500 cash.
The net cash flow from operating activities as a result of the four transactions is:

• A) $1,012.
• B) $1,015.
• C) $2,100.
• D) $2,188.

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Definitions:

Teres Major

A muscle located in the upper arm that assists in the rotation and adduction of the arm.

Shoulder Level

A reference point used in medical and fitness contexts to describe the height or area around the shoulders of a human body.

Pectoralis Major

A large muscle in the upper chest that aids in the movement of the shoulder and the arm.

Biceps Brachii

A muscle in the upper arm that helps in flexing the forearm at the elbow and in rotating the forearm.