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:

Flagellum

Long, slender cellular structure used for motility.

Eukaryote

Single- or multicelled organism whose cells characteristically have a nucleus; a protist, fungus, plant, or animal.

Protist

A diverse group of eukaryotic organisms, mostly unicellular, that are not plants, animals, or fungi, including amoebas, algae, and plasmodium.

Prokaryote

Informal term for a single-celled organism without a nucleus; a bacterium or archaeon.