New Fashion Stores,Inc.received 1,000 t-shirts on the first of the month.By the end of the month,the company had sold 743 shirts.The difference is ________.
A) inventory
B) retained earnings
C) working capital
D) equity
E) accounts payable

Question

Quizplus · Accepted Answer

The difference between the number of shirts received and the number sold is the remaining inventory of t-shirts, which is an asset for the company. Therefore, the best choice is A) inventory. The other options (B) retained earnings, (C) working capital, (D) equity, and (E) accounts payable are not relevant to this scenario.