Descriptive Questions - Discount on Bills payable.
1. If an organization purchases $700 of supplies on account, with terms of 2/15, n50:
a.$650 must be paid within 15 days of the invoice date
b.$698 must be paid within 50 days of the invoice date
c.$686 can be paid within 15 days of the invoice date, or $700 must be paid within 50 days of the invoice date
d.$686 can be paid within 15 days of the invoice date, or $714 must be paid within 50 days of the invoice date
2. ABC Company just announced a 4 for 1 stock split. What effect will this have on:
a.The market value
b.The number of total share
c.The total value of common stock on ABC Company's books
Label each answer clearly.