Emerald Co

question 81

Multiple Choice

Emerald Co.uses a perpetual inventory system and records purchases of merchandise at net cost.The company recently purchased 200 compact discs at an invoice price of $6,000 and terms of 2/10,n/30.Half of these discs had been mislabeled and were returned immediately to the supplier.The journal entry to record payment of this invoice after the discount period has expired will include a:

• A)Debit to Inventory for $3,000.
• B)Credit to Cash for $3,000.
• C)Debit to an expense account for $60.
• D)Credit to Cash for $2,940.

Compute trend percents to analyze the financial performance and position over multiple periods.

Calculate and interpret the days’ sales in inventory to assess inventory management efficiency.

Understand the concept and calculation of the price-earnings ratio and its implications for stock valuation.

Compute and analyze the working capital to understand a company’s short-term financial health.

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Definitions:

Delivering

The act of carrying something to a person or place, or the process of achieving something as promised or expected.

Relevant Information

Data or knowledge that is directly applicable or significant to the decision-making process or problem-solving situation at hand.

Knowledge Management

The act of generating, disseminating, applying, and overseeing an organization's knowledge and information.

Positive

Characterized by the presence of or emphasizing what is good or beneficial in a situation or person.