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A Company Pays for 25 Percent of Its Purchases by Credit

Question 63

Multiple Choice

A company pays for 25 percent of its purchases by credit terms n/60,40 percent of its purchases by credit terms n/30,and the remaining 35 percent by a two-month advance payment.The sources for June's cash payments schedule for direct materials would not include which of the following?


A) June's schedule of expected cash payments for direct materials
B) August's schedule of expected cash payments for direct materials
C) May's schedule of expected cash payments for direct materials
D) April's schedule of expected cash payments for direct materials

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