A Company Purchased $6,000 of Merchandise

question 60

Multiple Choice

A company purchased $6,000 of merchandise.Transportation costs were an additional $100.The company later returned $250 of the merchandise and paid the invoice within the 2% discount period.What is the total amount of cash paid?

• A)$5,733
• B)$6,100
• C)$5,735
• D)$5,730

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Definitions:

Marginal Propensity

The ratio of the change in consumption to the change in income, indicating how much consumption will change with a change in income.

Real GDP

The measure of a country's economic output adjusted for price changes, providing a more accurate reflection of an economy's size and growth.

Inventory Adjustments

Changes made to the recorded amount of inventory to account for discrepancies, damages, losses, or theft.

Aggregate Expenditure Line

A graphical representation in macroeconomics that shows the total spending on goods and services in an economy at various levels of income.