For a Blanket, a Company Uses 2

question 218

Multiple Choice

For a blanket, a company uses 2.24 spools of red thread for the seaming. The company makes 141 blankets per day. How much red thread does the factory need to purchase per day?

• A)315 spools
• B)310 spools
• C)311 spools
• D)316 spools

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Definitions:

Financial Liability

An obligation to transfer cash or other resources as a result of past transactions or events.

Contractual Obligation

A contractual obligation is a duty or responsibility that one party is legally bound to perform under a contract agreement with another party.

Cash Consideration

Payment made in cash during a transaction, as opposed to stock exchange or other non-cash assets.

Amortised Cost

A financial valuation technique that gradually writes off the initial cost of an asset over a period, or the method of allocating the cost of an intangible asset over its useful life.