A Company That Has Operated with a 30% Average Gross

question 172

Multiple Choice

A company that has operated with a 30% average gross profit ratio for a number of years had $100,000 in sales during the first quarter of this year. If it began the quarter with $18,000 of inventory at cost and purchased $72,000 of inventory during the quarter, its estimated ending inventory using the gross profit method is:

• A)$30,000
• B)$21,000
• C)$18,000
• D)$20,000
• E)$27,000

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Definitions:

Self-Monitoring

The practice of observing and managing one's behavior in social situations to conform to the perceived expectations of others.

Self-Efficacy

One’s beliefs about the degree to which one will be able to accomplish a goal if one tries.

Express

pertains to conveying thoughts, feelings, or instructions clearly and directly, often through verbal or non-verbal communication.

Personality

The combination of characteristics or qualities that form an individual's distinctive character, affecting how they think, feel, and behave across various situations.