The Following Entry Appears in Martin Supply's General Journal on March

question 47

Multiple Choice

The following entry appears in Martin Supply's general journal on March 10, 2010:
$$\begin{array} { | l | r | r | } \hline \text { Accounts Receivable } & 35,000 & \\\hline \text { Cash } & 21,000 & \\\hline \text { Equipment } & & 51,000 \\\hline\end{array}$$
-Refer to the above data. Before the journal entry above, Martin had assets of $900,000; liabilities of $460,000; and equity of $440,000. Total assets immediately after the above transaction has been recorded amount to:

• A) $900,000.
• B) $921,000.
• C) $956,000.
• D) $794,000.

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Definitions:

Flexibility of Reporting

The ability to adapt financial and corporate reporting to meet the specific requirements or preferences of users, enhancing the utility and readability of reports.

Raw Materials Inventory Turnover Ratio

A measure indicating how many times a company's raw material inventory is used up and replaced over a specific period, showing the efficiency in using its raw materials.

Raw Materials Purchased

The cost of raw inputs bought for the production of goods, including commodities like steel, cotton, or plastic.

Average Raw Materials Inventory

A measure of the average amount of raw materials on hand over a certain period, indicating how efficiently a company manages its stock of raw supplies.