Question

Two months ago, we received an invoice of $12,000 from Xorex Ltd for the purchase of goods on credit. Two-third of the amount was paid by cash and the balance was paid by cheque.

Answer 1

The question relates to an accounting and business scenario where $12,000 was paid in two methods, cash and cheque, after purchasing goods on credit. This subject is classified under Business for High School level. It emphasizes the importance of managing accounts payable and the use of various payment methods, including credit cards.

Step-by-step explanation:

The subject of the question relates to accounting and business transactions, specifically to credit, payment methods, and the management of accounts payable. In this context, two-thirds of a $12,000 invoice from Xorex Ltd was paid in cash, with the remaining balance paid by cheque. This situation involves basic mathematics to calculate the portions of the payment but is primarily a business transaction that falls under the subject of Business. It is relevant to high school students, especially those taking introductory courses in business, finance, or accounting.

This example reflects the importance of attention to detail and effective communication in managing financial transactions within a business. Promptly addressing errors, similar to what Noel did with the equipment bill, can save a company significant sums of money. Additionally, the use of credit cards as a means of payment, which provides short-term loans to users, is a common practice in business transactions.