In December of 2012, Jones Inc was formed as a corporation. The company plans to start its operations in early January of 2013. They have the following purchases budgeted for the first quarter of 2013: January $600,000 February 500,000 March 300,000 Jones has worked out agreements with its various suppliers to pay for one-fourth of a month's purchases each month, beginning in the month of
purchase, until the purchases are paid in full. No purchases were made prior to January. What are expected total cash disbursements for the first quarter of 2013?
A) $425,000
B) $625,000
C) $775,000
D) $350,000
C
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For the statement of cash flows, companies are required to classify their cash activities into three categories: operating, investing, and borrowing
a. True b. False Indicate whether the statement is true or false
A pension plan:
A. Is a contractual agreement between an employer and its employees in which the employer provides benefits to employees after they retire. B. Is always funded fully by employers. C. Can be underfunded if the plan assets are more than the accumulated benefit obligation. D. Is a contract between the company and the government. E. Can be a defined benefit plan or an undefined benefit plan.
This internal control questionnaire item-"Are interest payments and accruals monitored for due dates?"-relates to the control objective of ________.
A) proper period recording B) accounting C) validity D) completeness
The Independence Principle in the AICPA Code applies to:
A. All CPAs who render attestation services B. All members of the audit committee C. All CPAs regardless of professional services D. All accountants and auditors