Precision Musical Instruments,merchandisers of Musical Instruments,has Provided the Following Details

question 234

Multiple Choice

Precision Musical Instruments,merchandisers of musical instruments,has provided the following details: $$\begin{array} { | l | l | r | } \hline \text { Mar. 5 } & \text { Inventory purchased on account } & \$ 775,000 \\\hline \text { Mar. 8 } & \text { Freight in } & 45,000 \\\hline \text { Mar. 13 } & \text { Purchase returns } & 50,000 \\\hline \text { Mar. 14 } & \text { Allowances by vendor } & 15,000 \\\hline & \text { Payment made to vendor for purchases on } & \\\text { Mar. 20 } & \text { March 5 } & ?\\\hline\end{array}$$ Credit terms are: 3/20,n/45,FOB shipping point.Calculate the net cost of inventory purchased assuming that there are no other inventory-related transactions during the month.Assume that the perpetual inventory system is used.

• A) $760,000
• B) $732,350
• C) $710,000
• D) $733,700

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Definitions:

Concurrent Validity

A measure of how well a particular test correlates with a previously validated measure taken at the same time.

Construct Validity

The extent to which a test measures the theoretical construct or concept it is intended to measure.

Content Validity

A type of validity that examines how well a test samples a universe of items.

Reliability

The extent to which a measurement instrument yields reliable and uniform outcomes across various occasions.