Question

Betech Inc. has $50,000 in its bank account and $3,000 worth of goods in its warehouse. What is this amount ($53,000) known as in accounting

terms?
A slow variable
B. flow variable
C. stock variable
D. flock variable

Answer 1

(C) Stock Variable

Explanation:

With the $50,000 in the bank, it is assumed the value is earnings from stock. $3,000 worth of goods in the warehouse also make up the stocks hence the $50000 plus $3000 to make up $53,000 stock variable