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# Multiple Choice

1. Georgia Company's beginning and ending inventory amounts were \$150,000 and \$140,000, respectively. Cost of goods sold was \$670,000. Georgia Company purchased ________ of inventory.
a)\$680,000
b)\$670,000
c)\$660,000
d)an indeterminable amount

2. Which of the following could be used as account titles to refer to the owners paying more than the par value for a company's common stock?
1. paid in capital
3. capital in excess of par value of stock
4. capital surplus

a)only 2
b)2 and 3
c)1, 2, and 3
d)1, 2, 3, and 4

3. ________ is the major operating activity that increases cash.
a)Sales on account
b)Collections from sales to customers

4. The cash paid for taxes is included in the ________ section of the statement of cash flows.
a)net cash
b)expense
c)financing
d)operating

#### Solution Preview

1. Use the equation
Cost of goods sold = Beginning Inventory + Purchases - Ending Inventory
670,000 = ...

#### Solution Summary

The solution explains some multiple choice questions relating to inventory, common stock, cash and cash flows

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