Tyler Toys has beginning inventory for the year of $18,000. During the year, Tyler purchases inventory for $230,000

Tyler Toys has beginning inventory for the year of $18,000. During the year, Tyler purchases inventory for $230,000 and has cost of goods sold equal to $233,000. Tyler's ending inventory equals:

A) $15,000.

B) $18,000.

C) $21,000.

D) $19,000.

Answer: $15,000.

The primary distinction between operating activities and nonoperating activities in a multiple-step income statement is whether the activity is:

A) A large or small dollar amount.

B) Part of primary business operations.

C) Related to current versus long-term assets.

D) Reported as a revenue or an expense.

Answer: Part of primary business operations.

The distinction between operating and nonoperating income relates to:

A) Current versus noncurrent.

B) Primary versus peripheral activities of the reporting entity.

C) Revenues versus expenses.

D) Reliability of measurements.

Answer: Primary versus peripheral activities of the reporting entity.