The Activity of Vegas Company for the Month of April

question 104

Multiple Choice

The activity of Vegas Company for the month of April is given below:
$\begin{array} { l } \text { Cash purchases of inventory}&\$45,000 \\ \text {Credit purchases of inventory }&\$ 50,000\\ \text { Cash payment for credit purchases of inventory}&\$ 12,000\\ \text { Cash dividend paid}&\$7,000 \\ \text { Wages earned and paid}&\$ 12,000\\ \text {Wages earned and unpaid }&\$2,000 \\ \text {Rent paid for April, May and June }&\$ 9,000\\\end{array}$

Using the cash basis of accounting,the total expenses for Vegas Company for the month of April are ________.

• A) $35,000
• B) $78,000
• C) $80,000
• D) $95,000

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Definitions:

Interest

The cost of borrowing money, typically expressed as a percentage of the amount borrowed.

Rate Difference

The disparity in interest rates, often used in the context of comparing rates between two different financial products or within different markets.

Spread

The difference between the bid and the ask price of a security or the difference between the interest rate paid for deposits and received for loans.

Institutional Investors

Organizations such as banks, insurance companies, and pension funds that make substantial investments on the capital markets.