Question 1. Alabama Company's beginning and ending inventory amounts were $80,000 and $120,000, respectively. Cost of goods sold was $520,000. Alabama Company purchased ________ of inventory.
a)$560,000
b)$520,000
c)$480,000
d)$600,000
Question 2. Current assets are converted to costs or sold or consumed within:
a)the longer of one year or one operating cycle
b)the shorter of one year or one operating cycle
c)one fiscal year or one calendar year
d)one calendar year
Question 3. ________ is the major operating activity that decreases cash.
a)Purchases of inventory on account
b)Equipment purchases
c)Payments for inventory purchases
d)Advance payments for rent
Question 4. Debentures are:
a)short-term liabilities arising from income transactions
b)debt secured by a claim against specific assets
c)debt secured by a general claim against total assets
d)unearned revenues.