Xon Company Is Planning to Purchase Fixed Assets at a Cost

question 9

Multiple Choice

Xon Company is planning to purchase fixed assets at a cost of $200,000. The planned delivery date is 1 February 2015. A deposit of $10,000 is to be paid on 1/11/14. The amount that will appear in the cash budget for November 2014 is:

• A) $190,000 outflow.
• B) $10,000 outflow.
• C) $200,000 outflow.
• D) $10,000 inflow.

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Definitions:

ADL

Refers to Activities of Daily Living, which are routine activities people do every day without assistance, such as eating, bathing, dressing, toileting.

Self-sufficiency

The ability of an individual or community to meet their needs without external assistance, including producing food, goods, and services required for living.

Assisted Living

A residential option for seniors who need help with some daily activities like bathing, dressing, and medication management.

ADLs

Activities of Daily Living, which are routine activities people do every day without assistance, such as eating, bathing, dressing, and moving around.