Use the Following Information to Answer the Following Question(s)

question 41

Multiple Choice

Use the following information to answer the following question(s) .
Quick Corp.makes its purchases under terms of 2/10 net 30.
-If Quick foregoes the discount but does not pay for its purchases until day 40,what is Quick's effective cost of using this source of credit? Assume that no penalty is incurred for late payment.

• A)38.37%
• B)36.73%
• C)26.67%
• D)24.49%

Define cash equivalents and their role in financial transactions.

Recognize the importance of basic bank services in controlling and safeguarding cash.

Understand the shift in reliance from manual to technological controls in advanced accounting systems.

Understand the concept of separation of duties and its importance in reducing errors and fraud.

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Definitions:

Unfavorable

A term used to describe a variance or difference that negatively impacts financial performance.

Labor Rate Variance

The difference between the expected cost of labor at standard rates and the actual cost of labor incurred.

Raw Materials Quantity Variance

The difference between the expected amount of raw materials required for production and the actual amount used, evaluated in terms of cost.

Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, based on the standard hours worked and standard labor rate.