Cody Stopped by the Grocery Store on the Way Home

question 190

Multiple Choice

Cody stopped by the grocery store on the way home from school. He had nine dollars in his wallet. He selected the following items: a can of green beans at $.39; a jar of dill pickles at $2.29; three pounds of hamburger at $4.39; a head of lettuce at $.95; and a bottle of dressing at $1.49. First, he estimated the cost of the groceries to the nearest dollar then decided to also estimate to the nearest dime. Give both estimates and decide which method was more accurate for this situation.

• A) Dollar: $8.00; dime: $9.60; estimation to the nearest dime.
• B)Dollar: $9.00; dime: $9.60; either would be fine.
• C) Dollar: $9.00; dime: $9.60; estimation to the nearest dime.
• D)Dollar: $9.00; dime: $9.10; either would be fine.

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Definitions:

Liabilities

Financial obligations or debts owed by a business to external parties or entities.

Owner's Capital

The amount of money and assets the owner has invested in a business.

Revenues

The complete revenue earned from selling goods or services that are fundamental to a company's core business activities.

Expenses

Monetary costs incurred in the operation of a business, leading to the creation of liabilities or decrease in assets.