Maxwell Is a Partner and Has an Annual Salary of $30,000

question 6

Multiple Choice

Maxwell is a partner and has an annual salary of $30,000 per year, but he actually draws $3,000 per month. The other partner in the partnership has an annual salary of $40,000 and draws $4,000 per month. What is the total annual salary that should be used to allocate annual net income among the partners?

• A)$14,000
• B)$50,000
• C)$70,000
• D)$84,000

Grasp the concept of factoring as a cash management technique.

Comprehend the implications of changes in credit terms on the accounts payable period and cash cycle.

Recognize the various uses of cash in a company.

Understand how to manage cash flow problems in the short term.

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Definitions:

Marginal Utility

Marginal utility refers to the additional satisfaction or utility a consumer receives from consuming one more unit of a good or service.

MU to P Ratio

An alternative expression for the marginal utility to price ratio, assessing the level of satisfaction obtained per unit of expenditure.

Marginal Utility

The additional satisfaction or utility that a consumer gains from consuming one more unit of a good or service.

Marginal Utility

The additional satisfaction or utility that a consumer receives from consuming one more unit of a good or service.