Adi Manufacturing Corporation Is Estimating the Following Raw Material Purchases

question 132

Multiple Choice

Adi Manufacturing Corporation is estimating the following raw material purchases for the final four months of the year: At Adi,30% of raw materials purchases are normally paid for in the month of purchase.The remaining 70% is paid for in the month following the purchase. In Adi's budgeted balance sheet at December 31,at what amount will accounts payable for raw materials be shown?

• A)$760,000
• B)$532,000
• C)$228,000
• D)$588,000

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Definitions:

Little Albert

is a reference to a famous psychology experiment by John B. Watson and Rosalie Rayner that studied classical conditioning in humans, particularly the development of a fear response in a young boy.

Loud Noise

A sound that is high in volume or intensity, which can be distracting or harmful, causing stress, hearing loss, or other negative effects on health and well-being.

Observational Learning

A learning process through which behaviors are acquired by watching and imitating the actions of others.

Classical Conditioning

The educational practice of combining two stimuli multiple times, which leads to the response initially induced by the second stimulus being triggered by only the first stimulus in due course.