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

question 31

Multiple Choice

The following details have been extracted from the budget of a merchandising company. 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

Understand the preference rule for ranking projects using the profitability index.

Learn about the components included in the nominal cost of capital, including expected inflation.

Understand how the internal rate of return (IRR) functions as a decision criterion in investment projects.

Define and calculate the payback period for an investment.

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Definitions:

Filing

The process of submitting documents to a specified authority or organization for official review or record-keeping.

Perfects

The process of securing a legal interest or claim in collateral or property, often used in finance and legal contexts to ensure rights are enforceable.

Financing Statement

A document filed by a creditor to indicate a security interest in the debtor’s assets, used to perfect a lien.

Secured Party

An individual or organization that holds interest in a secured transaction as a creditor, protected by collateral.