Consider the Following Scenario When Answering the Following Questions

question 124

Multiple Choice

Consider the following scenario when answering the following questions:
Your friend Jon is starting a new photography business that specializes in photographs of Central Park in New York City. Because his business is new and risky, he is unable to obtain a loan from the local bank. On June 21, 2017, you agree to pay a price of $4,000 for a bond from Jon. You will receive $5,000 in return on June 21, 2018.
-The par value of the bond mentioned in the scenario is equal to

• A) $9,000.
• B) $1,000.
• C) $4,000.
• D) $5,000.
• E) $20,000.

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Definitions:

Selling And Administrative Budget

Forecasts expected expenses related to selling the product and managing the business, excluding manufacturing costs.

Cash Budget

A financial plan that estimates cash inflows and outflows over a particular period, often used to assess whether the entity can maintain its operations and obligations.

Units Produced

The total number of finished products that a company manufactures during a specific period.

Ending Inventory

The total value of all unsold goods held by a company at the end of an accounting period.