Use the Following Information for the Next 2 Questions

question 112

Multiple Choice

Use the following information for the next 2 questions.
Bynsel, Inc., a retailer, projects the following purchases and sales of its product for the next 4 months: Each unit costs $100, and all purchases are on account. Two-thirds of purchases are paid in the month of the purchase and one-third are paid in the month following the purchase. Bynsel gets a 3% discount whenever it pays in the month of the purchase. The selling price per unit is $200. Sales are 60% cash and 40% on customer credit cards. The bank charges Bynsel a 5% fee for each credit card transaction and transfers the funds to Bynsel's checking account on the same day as the credit card sale.
-What are cash disbursements for the third month?

• A) $36,367
• B) $23,033
• C) $33,333
• D) $32,733

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Definitions:

Financial Information

Data about a company's financial activities, including income, expenses, assets, liabilities, and equity, used by stakeholders to make informed decisions.

Omission

The act of leaving out or neglecting to include or do something, often resulting in incomplete information or tasks.

Qualitative Characteristics

Attributes that make the information provided in financial statements useful to users, such as relevance and reliability.

Understandability

A principle in accounting that financial information should be presented in a clear and concise manner, making it easily understandable by users.