Becham Inc

question 66

Multiple Choice

Becham Inc. had the following purchases budgeted for the last quarter of 2013: Becham pays one-half of a month's purchases in the month of purchase and the remainder in the following month. What are expected cash disbursements for the month of December?

• A) $124,500
• B) $ 84,000
• C) $ 87,000
• D) $ 42,000

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Definitions:

Current Liabilities

Financial obligations a company is required to pay within one year, such as accounts payable and short-term loans.

Accounts Payable

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

Stockholders' Equity

The residual interest in the assets of a corporation that remains after deducting liabilities, representing ownership interest held by shareholders.

Current Ratio

A liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year, calculated as current assets divided by current liabilities.