The Accountant for a Company Whose Inventory Was Destroyed by Fire

question 72

Multiple Choice

The accountant for a company whose inventory was destroyed by fire determined from undamaged records that the cost of goods available for sale was $100,000 and the net sales were $80,000 up to the date of the fire. The accountant also determined that the company's normal gross profit rate is 40 percent of net sales. From this data, the accountant estimated the cost of the inventory destroyed by the fire to be

• A) $60,000.
• B) $52,000.
• C) $32,000.
• D) $20,000. $80,000 x .6 = $48,000
• $100,000 - $48,000 = $52,000.

Comprehend the impact of internet technologies on global communication and learning.

Grasp the significance and challenges of network neutrality for internet service providers and users.

Assess the role of collaboration centers in optimizing business processes and innovation.

Understand the dynamics and challenges faced by global virtual teams, including communication and time management.

---

Definitions:

Inflation

An increase in the average cost of goods and services, resulting in a drop in the value of purchasing power.

Unemployment Rate

The unemployment rate represents the proportion of the workforce that is without a job and is actively looking for work.

Monetary Neutrality

The theory that changes in the money supply only affect nominal variables (like prices) and not real variables (like output) in the long run.

Phillips Curve

An economic concept depicting an inverse relationship between the rate of unemployment and the rate of inflation in an economy over time.