Xon Company Is Planning to Purchase Fixed Assets at a Cost

question 1

Multiple Choice

Xon Company is planning to purchase fixed assets at a cost of $200,000.The planned delivery date is 1st February 2015.A deposit of $10,000 is to be paid on 1/11/14.The amount that will appear in the cash budget for November 2014 is:

• A) $190,000 outflow.
• B) $200,000 outflow.
• C) $10,000 inflow.
• D) $10,000 outflow.

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Definitions:

Statistical Models

Representations of complex systems through mathematical formulas and algorithms based on statistical principles.

Dependent Variable

The variable in an experiment or study that is expected to change in response to changes in another variable (the independent variable).

Independent Variables

Variables in an experiment or model that are manipulated or changed to observe their effect on dependent variables, helping to determine causal relationships.

Specific Risk

The risk associated with individual securities or businesses, distinct from overall market risk, that can be mitigated through diversification.