On March 1,2018,Mandy Services Issued a 3% Long-Term Notes Payable

question 179

Multiple Choice

On March 1,2018,Mandy Services issued a 3% long-term notes payable for $15,000.It is payable over a 3-year term in $5000 principal installments on March 1 of each year,beginning March 1,2019.Each yearly installment will include both principal repayment of $5000 and interest payment for the preceding one-year period.What is the amount of total cash payment that Mandy will make on March 1,2019?

• A) $5000
• B) $5450
• C) $15,000
• D) $5225

Identify the conditions under which contracts can be voided due to illegality or inability to enforce.

Grasp the concept of restraint of trade and how it applies to contract agreements.

Understand the implications of not having a written agreement and how courts handle unenforceable contracts.

Grasp the principles behind the requirement of writing for certain contracts and the exceptions to this requirement.

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Definitions:

Standard Direct Materials

The predetermined cost and quantity of materials required for the production of goods, used in budgeting and costing.

Direct Materials

Raw materials that can be directly identified and easily traced to the manufacturing of a final product.

Standard Materials Price

The predetermined cost per unit of material that is used for budgeting and cost control purposes in manufacturing.

Direct Materials

Raw materials that are directly incorporated into a finished product and are a significant part of the manufacturing process.