A Carpenter Bought a Utility Van for $21,000 and Made

question 68

Multiple Choice

A carpenter bought a utility van for $21,000 and made a down payment of 20% of the purchase price.
a) Find the down payment.
b) Find the amount financed.

• A) a) $1050; b) $19,950
• B) a) $3150; b) $16,800
• C) a) $4200; b) $16,800
• D) a) $4200; b) $4200
• E) a) $3150; b) $17,850

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Definitions:

Cost Of Goods Sold

The immediate expenses linked to the creation of a company’s sold products, encompassing costs associated with both materials and labor.

Perpetual System

An inventory management system that continuously updates inventory records for each purchase and sale transaction.

Physical Inventory

The process of counting all physical merchandise to verify stock levels and value at a specific point in time.

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting its liabilities, representing ownership interest.