Purchases for May Were $60,000, While Expected Purchases for June

question 64

Multiple Choice

Purchases for May were $60,000, while expected purchases for June and July are $75,000 and $92,000, respectively. All purchases are paid 30% in the month of purchase and 70% the following month. At what amount are June payments for purchases budgeted?

• A) $64,500
• B) $70,500
• C) $86,900
• D) $92,100

---

Definitions:

Tippee

An individual who receives confidential information from an insider.

Presidential Profits

Earnings generated by a sitting president's business ventures, potentially raising ethical concerns.

Asset Sale

The process of selling a company's assets, as opposed to selling the company's stock or shares.

Effective Date of Registration

The effective date of registration is the specific date on which a document, such as a company's securities registration, becomes officially valid and enforceable.