Avery Inc Would Like to Prepare a Summary Cash Budget for for June

question 44

Multiple Choice

Avery Inc. would like to prepare a summary cash budget for June. The following information is available: What is the cash balance at the end of June expected to be?

• A) $15,000
• B) $12,000
• C) $26,000
• D) $29,000

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Definitions:

Trade Discount

A reduction in the list price granted by a seller to a buyer based on the volume of the transaction or the buyer's trade status.

Catalog List Price

The official selling price of a product as listed in a catalog, before any discounts or promotions are applied.

Credit Terms

The conditions under which a seller extends credit to a buyer, including payment deadlines, interest rates, and discounts for early payments.

Invoice Discount

A reduction in the billed price granted to customers, often used as an incentive for early payment.