Tippi had beginning shareholders’ equity of €100.000. During the year, total assets increased by €240.000, and total liabilities increased by €140.000. This outcome is possible:

Select one:

1) if Tippi paid out 20.000 in dividends and realized a profit of 120.000.

2) only if Tippi realized no profit during the current year.

3) if Tippi makes a loss of 100.000, but at the same time shareholders invest an 100.000 new capital in the firm.

4) only if the shareholders of Tippi increase their investment in the firm.

On Jan 1, 2013, WestIron purchased an asset for €13.500, with a €1.500 estimated salvage value, and a 4-year useful life. How much is the accumulated depreciation at the end of 2016 as per the straight-line method?

Select one:

1) € 0

2) € 13.500

3) None of these

4) € 12.000

RealBargain Co. is a merchandising firm, which uses a perpetual inventory system. On Aug 5, RealBargain purchased €4.500 of merchandise FOB at delivery with the credit terms 2/10, n/30. At the time of purchase, RealBargain received 6% customer loyalty discount from the wholesaler. The shipping company charges the responsible party for the freight cost by €939, to be paid immediately in cash to the shipping company. On Aug 9, RealBargain received a credit note of €800 from the wholesaler for a part of the merchandise that did not comply with the original order. Which of the following is the cost of inventory for merchandise purchased (rounded), if RealBargain pays its bill on Aug 14?

Select one:

1) €4.300

2) €3.361

3) €5.084

4) €4.145

Answer rating: 100% (QA)

Answer is Option 4 Cost of goods available for sale ending inventorycost of goods sold Explanation T... View the full answer