Question 46 (2 points)

Identify the likely advantage of extending credit to customers.

Question 46 options:

	Fewer expenses
	Reduced amounts owed to creditors
	Lower accounts receivable
	Increased sales

Question 47 (2 points)

A company that purchases inventory primarily in finished form for resale to customers is known as a

Question 47 options:

	Merchandising company
	Inventory company
	Service company
	Manufacturing company

Question 48 (2 points)

During the year, Rose Corporation had the following inventory transactions. For the entire year, Rose Corporation sells 850 units of inventory for $75 each.

Date	Transaction	Number of Units	Cost Per Unit	Total Cost
Jan 10	Beginning inventory	125	$ 50	$ 6,250
Apr 12	Purchase	425	$ 52	$ 22,100
Jun 15	Purchase	250	$ 54	$ 13,500
Oct 10	Purchase	200	$ 57	$ 11,400
		1,000		$ 53,250

Select the correct Cost of Goods Sold for Rose Corporation assuming it uses theLIFO method.

Question 48 options:

	$45,700
	$7,550
	$11,250
	$44,700