Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

4. Merchandising Operations

Net Sales

Financial Accounting

4. Merchandising Operations

Net Sales

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Multiple Choice

Jocelyn wants to purchase a car with a listed price of $25,000. If she needs to make a 20\% down payment, how much will she need to save for the down payment, and how much will she need to borrow?

Down payment: $10,000; Amount to borrow: $15,000

Down payment: $5,000; Amount to borrow: $20,000

Down payment: $7,500; Amount to borrow: $17,500

Down payment: $2,500; Amount to borrow: $22,500

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Verified step by step guidance

Step 1: Understand the problem. Jocelyn wants to purchase a car priced at $25,000. She needs to make a 20% down payment, and the remaining amount will be borrowed. The task is to calculate the down payment and the borrowing amount.

Step 2: Calculate the down payment. The formula for the down payment is: Down Payment = Listed Price × Down Payment Percentage. Using MathML, the formula can be expressed as:

Down Payment = Listed Price \times Down Payment Percentage

Step 3: Substitute the values into the formula. The listed price is $25,000, and the down payment percentage is 20% (or 0.20 in decimal form). Using MathML, this substitution can be expressed as:

Down Payment = 25000 \times 0.20

Step 4: Calculate the borrowing amount. The formula for the borrowing amount is: Borrowing Amount = Listed Price - Down Payment. Using MathML, the formula can be expressed as:

Borrowing Amount = Listed Price - Down Payment

Step 5: Substitute the values into the borrowing formula. The listed price is $25,000, and the down payment is the value calculated in Step 3. Using MathML, this substitution can be expressed as: