Nice Guys Apparel Received a $200 Credit Memorandum as an Allowance

question 92

Multiple Choice

Nice Guys Apparel received a $200 credit memorandum as an allowance for goods that it returned to one of its suppliers. Identify the statement below that would be correct when posting the transaction.

• A)A credit of $200 would be posted to the Purchases account in the general ledger.
• B)A debit of $200 would be posted to the supplier's account in the accounts payable ledger.
• C)A debit of $200 would be posted to the supplier's account in the accounts receivable ledger.
• D)A credit of $200 would be posted to the Accounts Receivable account in the general ledger.

Learn about the concept of arbitrage and its role in financial markets.

Analyze the significance of the market portfolio and its characteristics according to the CAPM.

Appreciate the impact of liquidity and other factors not fully explained by CAPM on security pricing.

Understand the critiques and alternatives to the CAPM, including multi-factor models.

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Definitions:

Financial Calculation

The process of determining financial figures, often involving interest, cash flows, investments, margins, and returns analysis.

Percentage

A part or portion of a whole, expressed as a fraction of 100, used to quantify relative differences or changes.

Daily Interest

The interest amount calculated on the principal amount on a daily basis.

Exponential Notation

A mathematical way to write numbers using bases and exponents.