The Following Details Have Been Extracted from the Budget of a Merchandiser

question 5

Multiple Choice

The following details have been extracted from the budget of a merchandiser. Commission and salaries expenses are paid 50% in the month to which they relate and the balance in the next month. Rent and miscellaneous expenses are paid as and when they occur. Insurance is prepaid at the beginning of the quarter. Calculate cash payments for the selling and administrative expenses for the first quarter of the next year.

• A)$70,400
• B)$50,500
• C)$75,000
• D)$62,750

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Definitions:

Investment Costs

Investment costs include all the expenses associated with acquiring an asset, including purchase price, broker fees, setup costs, and any other costs necessary to bring the asset to a usable state.

Property Taxes

Taxes assessed on real estate by local government, based on the property's value.

Executor's Accounting

The financial reporting and record-keeping process conducted by an executor of an estate to track assets, liabilities, and distributions to beneficiaries.

Obligations

Responsibilities or duties bound by legal or contractual agreements.