Expected Purchases for June and July Are $76,000 and $90,000

question 37

Multiple Choice

Expected purchases for June and July are $76,000 and $90,000, respectively. Purchases for May were $56,000. All purchases are paid 40% in the month of purchase and 60% the following month. At what amount are June payments for purchases budgeted?

• A)$64,000
• B)$68,000
• C)$88,800
• D)$100,000

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Definitions:

Cumulative Voting

A method of voting for corporate directors that allows shareholders to multiply their shares by the number of directorships being voted on and to allocate their votes among the candidates as they see fit.

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share in the company's profits through dividends or capital appreciation.

Directors

Individuals elected by shareholders to oversee the management and make strategic decisions for a corporation.

Model Business Corporation Act (MBCA)

A set of model laws prepared by the American Bar Association to provide a standard for the incorporation and operation of corporations in the United States.