During the Month of March, Harley's Computer Services Made Purchases

question 244

Multiple Choice

During the month of March, Harley's Computer Services made purchases on account totaling $43,500. Also during the month of March, Harley was paid $8,000 by a customer for services to be provided in the future and paid $36,900 of cash on its accounts payable balance. If the balance in the accounts payable account at the beginning of March was $77,300, what is the balance in accounts payable at the end of March?

• A) $83,900.
• B) $91,900.
• C) $4,900.
• D) $75,900.
• E) $6,600.

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Definitions:

Equity Method

An accounting technique used to record investments in other companies where the investor has significant influence but not full control.

Amortization

The process of gradually writing off the initial cost of an intangible asset over its useful life.

Acquisition Differential

The gap between the acquisition cost of a company and the fair value of its clearly identifiable net assets.

Impairment

A decrease in the recoverable value of an asset below its carrying amount, leading to an adjustment in the value recorded on financial statements.