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.

---

Definitions:

Fredrick Taylor

An American engineer and management consultant known for his scientific management theory, which sought to improve industrial efficiency through systematic study and analysis.

Proper Training

Systematic instruction and education designed to equip individuals with the knowledge and skills necessary for their roles.

Economic Gain

The increase in financial value or wealth, often resulting from business activities, investments, or measures of economic performance.

Management Thought

The theories and principles that guide the practices and decisions of managers in planning, organizing, leading, and controlling an organization.