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1. If the organization buys $700 of supplies on account, with terms of 2/15, n50:

a. $650 should be paid within 15 days of invoice date
b. $698 should be paid within 50 days of invoice date
c. $686 can be paid within 15 days of invoice date, or $700 should be paid within 50 days of invoice date
d. $686 can be paid within 15 days of invoice date, or $714 should be paid within 50 days of invoice date

2. ABC Company just proclaimed a 4 for 1 stock split. What effect will this have on:

a. Market value
b. Number of total share
c. Total value of common stock on ABC Company's books

Label each answer clearly.

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M920511

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