The Following Transactions Occurred During March, the First Month of Operations

question 33

Multiple Choice

The following transactions occurred during March, the first month of operations for Quality Galleries Limited:
* Share Capital was issued in exchange for $360,000 cash.
* Purchased $180,000 of equipment by making a $60,000 cash down payment and signing a note payable for the balance.
* Made a $35,000 cash payment on the note payable from the purchase of equipment.
* Sold a piece of equipment for cash of $18,000. The equipment was sold at cost, so there is no gain or loss on the sale.

-Refer to the above data. What is the balance in the Note Payable account at the end of March?

• A) $120,000.
• B) $85,000.
• C) $35.000.
• D) $155,000

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Definitions:

EMV

Expected Monetary Value, a decision-making tool used in risk management to calculate the average outcome when the future includes scenarios that may or may not happen.

Medium Potential

A term indicating a moderate level of capacity or ability to achieve or develop something in the future.

Opportunity Losses

The losses incurred by not choosing the best alternative financial option, often considered in decision-making processes to evaluate different investment or business strategies.

Aggressive Strategy

A business or investment approach focused on high risk and high reward opportunities, aiming for maximum growth or return.