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.
