During the Financial Year, Cresswell Limited Had a Cost of Sales

question 14

Multiple Choice

During the financial year, Cresswell Limited had a cost of sales amounting to $260 000. Opening and ending balances of related accounts were:

A discount of $2000 for prompt payment was received. The amount of cash paid for goods purchased during the year was:

• A) $259 000.
• B) $263 000.
• C) $275 000.
• D) $279 000.

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Definitions:

Wheat Price

The cost per unit of wheat, which can fluctuate based on market conditions, supply and demand, and external economic factors.

Interest Rate Cap

A financial derivative or agreement that limits the maximum interest rate that can be charged on a variable-rate loan or mortgage.

Interest Rate Floor

An agreement in which a lower limit is set on the interest rate that can be paid on a financial obligation.

Collar

A strategy in finance used to limit the range of possible returns on an investment, often by buying and selling options.