Expected Direct Materials Purchases for Wade Company Are $630000 in the First

question 121

Multiple Choice

Expected direct materials purchases for Wade Company are $630000 in the first quarter and $810000 in the second quarter.Forty percent of the purchases are paid in cash as incurred and the balance is paid in the following quarter.The budgeted cash payments for purchases in the second quarter are:

• A)$864000.
• B)$810000.
• C)$702000.
• D)$648000.

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Definitions:

Innocent Misrepresentation

A misrepresentation made without fault or knowledge of its falsity, which may allow the misled party to void the contract but not claim damages.

Intentionally Deceptive

Deliberately misleading actions or statements designed to make someone believe something that is not true.

Ratification

The action of officially approving or confirming a previous act or decision, which was made without authorization or was otherwise questionable, to make it legally valid.

Voidable Contract

A contract that remains valid until one party, who is entitled to do so because of a defect in the contract formation, chooses to void it.