The Terms of an Invoice Are 3/10,n/25

question 124

Multiple Choice

The terms of an invoice are 3/10,n/25.This means that a ________.

• A)discount of 10 percent is allowed if the invoice is paid within three days
• B)discount of 3 percent is allowed if the invoice is paid within 10 days
• C)discount of 25 percent is allowed if the invoice is paid within 10 days
• D)discount of 3 percent is allowed if the invoice is paid after 25 days

Comprehend the treatment of unrecognized intra-entity gross profit in consolidation.

Understand the consequences of intra-entity transfers of depreciable assets and land on consolidated financial statements.

Master the computation of net income attributable to noncontrolling interest and equity in earnings.

Apply knowledge of consolidation adjustments to compute consolidated sales and cost of goods sold.

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Definitions:

Beta

A measure of a stock's volatility in relation to the overall market; a beta greater than 1 indicates that the stock is more volatile than the market.

Market Risk Premium

It is the extra return investors expect from holding a risky market portfolio instead of risk-free assets.

Required Rates Of Return

The minimum annual percentage earned by an investment that will entice individuals or companies to put money into a particular project or investment.

Beta

Beta measures the tendency of a security's returns to respond to swings in the market, providing insight into its relative risk.