1. Suppose the Inventory balance at the end of year is $125,000, and it has increased by 5% during year. The Inventory balance at the beginning of year was closest to:
a. $119,048.
b. $131,579.
c. $131,250.
d. $118,750.
2. Which of the given would be most likely to reveal that cost of goods sold increased by specific dollar amount during the year?
a. ratio analysis
b. trend analysis
c. vertical analysis
d. horizontal analysis
3. Consider the transactions given below:
I. Borrowed cash on a note payable, $80,000
II. Provided services on account, $10,000
III. Received cash from a customer as payment on account, $8,000
IV. Received a utility bill, $1,200
Total liabilities would be:
a. $1,200
b. $81,200
c. $98,000
d. $80,000