The Following Information Is Available for Pear Limited for 2020

question 64

Multiple Choice

The following information is available for Pear Limited for 2020: $\begin{array}{llcc} \text {Accounts payable, beginning.................................................................... } &\$14,000 \\ \text { Cash payments on account during year.................................................... } &54,000\\ \text {Purchase discounts taken during year on 2020 purchases.......................... } &1,200\\ \text {Accounts payable, ending.......................................................................... } &7,000\\\end{array}$
Assuming the company records purchases at gross amounts, the total purchases for 2020 would be

• A) $48,200.
• B) $61,000.
• C) $55,200.
• D) $59,800.

Grasp the challenges and benefits of pay-for-performance programs.

Comprehend the effects of external factors on sales incentives.

Recognize the significance of executive perquisites and their rationale.

Understand stock ownership plans and their role in fostering employee investment in company success.

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Definitions:

Taxes

Compulsory charges imposed by governments on individuals or entities to fund public services and infrastructure.

Investing Activity

Transactions involving the purchase and sale of long-term assets and investments, part of a company's cash flow statement that indicates how funds are used and generated.

Corporation

Business organization that is both a legal and accounting entity.

Operating Activities

Business activities directly related to the production and delivery of goods and services, which are reflected in the cash flow statement.