Suppose That Dave Has $200 to Spend Per Week and He

question 457

Multiple Choice

Suppose that Dave has $200 to spend per week and he buys only magazines and pizza. The price of a pizza is $10 and the price of a magazine is $5. If Dave buys 20 magazines per week, which of the following amount of pizza is not affordable to him?

• A) 10
• B) 20
• C) 9
• D) All of the above answers are correct because none of the listed amounts of pizza are affordable.

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Definitions:

Liabilities

Financial obligations or debts that a company owes to others, due to past transactions or events.

Revenue

The complete financial intake a company secures from transactions involving goods or services within a certain interval.

Expenses

Outflows or other using up of assets or incurrence of liabilities during a period from delivering or producing goods, rendering services, or carrying out other activities that constitute the entity’s ongoing major or central operations.

Held-to-maturity Securities

Financial assets purchased with the intention and ability to hold them until a specified maturity date.