What Item Is NOT a Line Item on the Purchases

question 128

Multiple Choice

What item is NOT a line item on the purchases and cost of goods sold budget?

• A) purchases of inventory
• B) sales
• C) beginning inventory
• D) desired ending inventory

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Definitions:

Compounded Monthly

This term describes the process where interest earned is added to the principal, and future interest payments are calculated based on the new total, on a monthly basis.

Monthly Payment

A regular payment made each month on a loan, mortgage, or other form of debt, typically including both principal and interest components.

Loan Term

The duration of time agreed upon by the lender and borrower for the repayment of a loan.

Discount Rate

The interest rate charged to commercial banks and other depository institutions for loans received from a central bank's discount window; or alternatively, used in discounted cash flow (DCF) analysis to present value future cash flows.