A Business Received an Offer from an Exporter for 5,000

question 25

Multiple Choice

A business received an offer from an exporter for 5,000 units of product at $10 per unit.
The acceptance of the offer will not affect normal production or domestic sales prices.
The following data are available:

-What is the differential revenue from the acceptance of the offer?

• A)$45,000
• B)$40,000
• C)$50,000
• D)$60,000

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Definitions:

Current Liability

A company's debts or obligations that are due within one year or within the normal operating cycle.

Receiving Payment

The process of collecting money from customers or clients in exchange for goods or services rendered.

Notes Payable

Short-term or long-term liabilities representing amounts owed by a business, documented by a formal promissory note.

Accounts Payable

Liabilities owed by a business to its suppliers or creditors for goods and services purchased on credit.