On May 1,2014,SBC INC

question 52

Multiple Choice

On May 1,2014,SBC INC.buys a computer listed for $12,600.The office supply store agrees to accept a $1,800 down payment and a $11,000,three-year note payable at $3,500 per year.The company's banker has suggested that an appropriate market rate is 11% per annum for loans that mature in one year or less and 14% for loans with longer maturities.At what amount will the note be recorded at in the accounting records?

• A)$1,800
• B)$8,126
• C)$8,553
• D)$11,000

Analyze a company's financial structure through its total stockholders' equity and total liabilities and equity.

Evaluate a company's efficiency through turnover ratios like accounts receivable turnover, inventory turnover, and analyze the implications of these ratios.

Assess the company's credit management efficiency through the average collection period and the average sale period calculations.

Comprehend the importance of financial ratios in making investment and financial decisions.

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Definitions:

Unit-Level

Activities or costs that vary with each unit of production, such as materials and direct labor.

Batch-Level

Activities or costs that are incurred for each batch of products rather than for each unit, affecting multiple units of a product at one time.

Facility Level

Pertains to the activities and costs associated with maintaining a physical establishment or the overall environment where business operations occur.

Sales Price

The amount a customer pays to purchase a good or service.