On the Due Date, Merrel Makes Proper Tender of Full

question 72

Multiple Choice

On the due date, Merrel makes proper tender of full payment of a note to Russell, who is entitled to payment. If Russell refuses payment, Merrel is discharged from liability for:

• A) the face amount of the note.
• B) any interest accrued until the time of tender.
• C) interest after the due date.
• D) All of these are correct.

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Definitions:

Production Budget

is a financial plan that estimates the cost of production based on projected product volumes, including costs of materials, labor, and overhead.

Ending Inventory

The value of goods available for sale at the end of an accounting period, calculated using inventory valuation methods such as FIFO, LIFO, or weighted average.

Budgeted Sales

Projected amounts of sales for a future period, used for planning and performance evaluation purposes.

Unit Product Cost

The total cost to produce one unit of product, including direct materials, direct labor, and overhead.