Julia Is Offered Two Options of Government Subsidies: $100 Food

question 28

Multiple Choice

Julia is offered two options of government subsidies: $100 food stamp or $100 cash.If she receives $100 cash,she will spend $80 on food.If equivalent evaluation is measured for the situation when only $100 is available to her,the equivalent evaluation is

• A)greater than $100.
• B)equal to $100.
• C)less than $100.
• D)Not enough information.

---

Definitions:

Terms 2/10, N/30

Payment terms indicating a 2% discount is available if paid within 10 days; otherwise, the full (net) amount is due in 30 days.

Merchandise

Goods that are bought and sold by businesses in the ordinary course of commerce.

General Journal Entries

Records of financial transactions where each entry is recorded in a double-entry accounting system, impacting at least two accounts.