Use the Following to Answer Questions

question 86

Multiple Choice

Use the following to answer questions:
Scenario: Music Downloads and Streamed Movies
Phillip has an income of $300 per month, which he uses to purchase music downloads (MD) and streamed movies (SM) . Each music download costs $1 and each streamed movie costs $5.
-(Scenario: Music Downloads and Streamed Movies) Read the scenario Music Downloads and Streamed Movies. Which of the following equations expresses Phillip's budget line?

• A) 300 = 1MD + 5SM
• B) SM = 300 - 1X
• C) 300 = 1 / MD + 5 / SM
• D) SM = 300 + 5SM

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Definitions:

Consolidated Statement

A financial statement that integrates the assets, liabilities, and operating results of a parent company and its subsidiaries.

Carrying Value

The value at which an asset is recognized on the balance sheet, factoring in depreciation, amortization, and impairment charges.

Fair Value

An estimate of the price at which an asset or liability could be traded in a current transaction between willing parties, other than in a forced or liquidation sale.

Goodwill

represents the excess of the purchase price over the fair value of the net assets of the acquired company in a business combination.