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?

Question

Quizplus · Accepted Answer

The cash payments schedule for June would not include June's direct materials purchases budget because payments for purchases are made in advance or based on credit terms from previous months.

A Company Pays for 25 Percent of Its Purchases by Credit