If Merchandise Sells for $3,500, with Terms of 3/15, N/45

question 61

Multiple Choice

If merchandise sells for $3,500, with terms of 3/15, n/45, and the cost of the inventory sold is $2,100, the amount charged to sales is

• A) $3,395
• B) $3,500
• C) $2,037
• D) $2,100

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Definitions:

Exchange Rates

The valuation of one currency compared to another for the purpose of exchange.

Goodwill Impairment

The financial charge taken when the carrying value of goodwill on a company’s balance sheet exceeds its fair value, indicating that the value of acquired assets has decreased.

Functional Currency

The currency of the primary economic environment in which an entity operates and carries out its business transactions.

Fair Value

The market value of an asset or liability based on current prices in an active market.