A Company Reported the Following Information for Its Most Recent

question 12

Multiple Choice

A company reported the following information for its most recent year of operation: purchases,$100,000;beginning inventory,$20,000;and cost of goods sold,$110,000.How much was the company's ending inventory?

• A)$10,000.
• B)$20,000.
• C)$15,000.
• D)$30,000.

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Definitions:

Common Stock

A type of equity security that represents ownership in a corporation, granting holders voting rights and a share in the company’s profits.

Warrant

A financial instrument that gives the holder the right, but not the obligation, to purchase a company's stock at a specified price before a certain date.

Call Option

A financial contract that gives the buyer the right, but not the obligation, to buy an underlying asset at a specified price within a certain period.

Firm Value

The total value of a business, determined by its assets, earnings, and potential in the market.