If the Amount Payable in Two Years Is $2,420 for a Simple

question 26

Multiple Choice

If the amount payable in two years is $2,420 for a simple loan at 10 percent interest,the loan amount is

• A)$1,000.
• B)$1,210.
• C)$2,000.
• D)$2,200.

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Definitions:

Weighted-Average Method

The weighted-average method is a cost accounting technique used to calculate inventory and cost of goods sold by assigning an average cost to each unit, based on the weight of those units in beginning inventory and purchases made.

Equivalent Units

In cost accounting, this is a metric that represents the work accomplished by unfinished units as if they were fully completed units.

Conversion Costs

Conversion costs are the expenses incurred to convert raw materials into finished goods, typically including labor and overhead costs.

Process Costing

An accounting methodology used for assigning production costs to units of output, particularly suitable for continuous production processes.