From the standpoint of economic growth, banks are important to:
A.
fight inflation.
B.
keep interest rates low.
C.
channel savings into investment.
D.
channel investment into savings.
E.
facilitate the use of checking and savings accounts.

To conceal a theft involving receivables, a dishonest bookkeeper might charge the b) miscellaneous expense account.

By doing so, they can hide the theft by attributing it to a vague and less scrutinized account. Miscellaneous expense accounts often include a variety of unrelated costs, making it difficult to identify discrepancies.

Charging the theft to other accounts, like miscellaneous income or petty cash, would not be effective in hiding the theft. Miscellaneous income would increase the company's income, making it easier to detect irregularities. Petty cash is a small fund used for minor expenses, and any significant theft would be more noticeable in this account.

Sales returns would also not be an effective option, as this account represents goods returned by customers. Charging the theft to sales returns would create an imbalance between the physical inventory and financial records, potentially raising suspicions.

In summary, a dishonest bookkeeper attempting to conceal theft involving receivables would likely charge the miscellaneous expense account to make it less noticeable and more challenging to trace.

Therefore, the correct answer is b) miscellaneous expense

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To launch a new phone service, ABC Company should consider different store types to locate their first ten retail outlets. Firstly, high traffic areas such as shopping malls, airports, and train stations are suitable locations as they offer a large number of potential customers.

Secondly, the company should consider placing stores in residential areas or suburbs to target local customers. Thirdly, business districts are also a potential location as they can target professionals who may need the phone service for work purposes.

Lastly, tourist areas can be a strategic location as they can target tourists who need a reliable phone service during their travels.

Overall, the company should consider a mix of store types to maximize their customer reach and ensure they are accessible to all potential customers. It is also important to consider the competition in the area and ensure the location offers easy access and convenience for customers.

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The shifts in demand and supply will affect the equilibrium in the market for pens.

Due to the increase in the number of students who are allergic to pencil erasers, the demand for pens will increase, leading to a shift in the demand curve to the right. As a result, the equilibrium price and quantity of pens will both increase.

However, the drop in the price of ink, a major input in the pen production process, will increase the supply of pens, leading to a shift in the supply curve to the right. This will cause the equilibrium price of pens to decrease, but the equilibrium quantity will increase.

Overall, the increase in demand and the decrease in supply will result in a higher equilibrium quantity of pens, but the effect on the equilibrium price will depend on the magnitude of the shifts in demand and supply.

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Yes, it is appropriate to ask for additional supporting documentation when faced with a questionable payment. This is important to ensure that the payment is legitimate and that the company's financial records are accurate.

Asking for supporting documentation can help to clarify the purpose of the payment and ensure that it is in line with company policies and procedures. Examples of supporting documentation that may be requested include invoices, receipts, contracts, and purchase orders.

By requesting additional documentation, you can verify the legitimacy of the payment and ensure that it is not fraudulent or unauthorized. This can help to protect the company from financial losses and prevent potential legal or regulatory issues.

It is important to approach the situation professionally and respectfully, explaining the reason for the request and providing a deadline for when the documentation is needed. This will help to establish clear communication with the vendor or employee making the payment and ensure that the issue is resolved promptly.

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The total expected cash receipts in March are $159,000.

To calculate the total expected cash receipts during March, we need to determine the credit sales in January, February, and March.

In January, credit sales are $72,000 ($120,000 x 60%). Half of this amount ($36,000) will be collected in January and the other half in February.

In February, credit sales are $108,000 ($180,000 x 60%).

Half of this amount ($54,000) will be collected in February and the other half in March.

In March, credit sales are $90,000 ($150,000 x 60%).

Half of this amount ($45,000) will be collected in March and the other half in April.

Therefore, the total expected cash receipts in March are $159,000 ($120,000 x 40% + $36,000 + $54,000 + $45,000).

The correct answer is $159,000.

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Fads are characterized by their: unusually high sales and rapid decline. The correct answer is c.

Fads are short-lived trends that experience a sudden surge in popularity and then quickly decline. They are characterized by their rapid rise in sales and widespread adoption by consumers, often driven by social or cultural factors.

Fads tend to be driven more by emotional appeal and novelty than practicality or durability, which contributes to their short lifespan. Unlike enduring trends or classics, fads do not have lasting power and tend to lose popularity quickly once the novelty wears off.

Some examples of past fads include pet rocks, Beanie Babies, and fidget spinners. Fads are important for marketers to understand as they can provide a unique opportunity to capitalize on a trend, but also carry the risk of investing in a short-lived phenomenon that may not provide long-term success.

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Complete question:

Fads are characterized by their ________.

a. enduring nature that spans several generations

b. low rates of adoption by consumers

c. unusually high sales and rapid decline

d. basic and distinctive modes of expression that seldom become unpopular

e. non-attainment of the last two stages of the product life cycle

The government imposes a price ceiling on bread: a price ceiling on bread can lead to a shortage of bread. The correct answer is D.

When the government imposes a price ceiling on bread, it means that the price of bread cannot exceed a certain level. This price ceiling is typically set below the market equilibrium price. As a result, there are several potential consequences of a price ceiling on bread.

One potential consequence is a shortage of bread. Since the price ceiling is below the market equilibrium price, suppliers may not find it profitable to produce as much bread as consumers demand. This can lead to a shortage of bread in the market. Consumers may have to wait in long lines or face empty shelves in grocery stores.

Another potential consequence is the development of a black market in bread. When the price ceiling is imposed, some consumers may be willing to pay more than the ceiling price for bread.

This creates an incentive for suppliers to sell bread on the black market, where prices are not regulated by the government. However, this can lead to quality concerns and even health risks for consumers.

A decline in the quality of bread is also a potential consequence of a price ceiling. Since suppliers cannot charge more than the ceiling price, they may cut costs by using lower-quality ingredients or reducing their production processes. This can lead to a decline in the quality of bread available in the market.

Finally, a price ceiling on bread can decrease the opportunity cost of searching for bread. Consumers may spend less time searching for the best deal on bread since prices are regulated by the government. This can lead to a decrease in competition among suppliers and reduce innovation in the bread market.

In summary, a price ceiling on bread can lead to a shortage of bread, the development of a black market, a decline in the quality of bread, and a decrease in the opportunity cost of searching for bread. These consequences can have significant impacts on low-income consumers who rely on affordable bread to meet their basic needs.

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Limitations of self-imposed budgeting include suboptimal budget recommendations, unrealistic profit targets, and budgetary slack.

Self-imposed budgeting refers to the process where managers and employees at different levels participate in setting budgetary goals. Although this approach has several advantages, it also comes with some limitations. Suboptimal budget recommendations may arise if individuals are not fully aware of the organization's strategic objectives or lack the expertise to make informed decisions.

Unrealistic profit targets can be set if employees are overly optimistic about their performance or do not consider potential obstacles. Budgetary slack is a common issue in self-imposed budgeting, as managers might deliberately underestimate revenues or overestimate expenses to make their targets more easily achievable.

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The incentive to cheat is strong in a cartel because each firm can increase its output and thus its profits by cutting price.

This is because the marginal revenue for an individual firm is greater than marginal cost at the profit-maximizing price set by the cartel. Additionally, there is a significant lack of government regulation of cartels, especially those in worldwide production.

Lastly, the production costs are the same for each firm, but the product demand differs, creating a competitive environment within the cartel. All of these factors contribute to the strong incentive to cheat in a cartel.
The incentive to cheat is strong in a cartel because the marginal revenue for an individual firm is greater than the marginal cost at the profit-maximizing price set by the cartel.

When a firm lowers its price, it can increase its output and profits, making cheating tempting for cartel members.

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If you win a dollar 55% of the time, and your customer wins a dollar 45% of the time, the profit you would expect to have if 7500 games are played is $750. Option 3 is correct.

Step 1: Calculate your expected winnings.
- You win a dollar 55% of the time, so multiply the total games (7500) by your winning rate (0.55).
- 7500 * 0.55 = 4125 dollars

Step 2: Calculate your customers' expected winnings.
- Your customers win a dollar 45% of the time, so multiply the total games (7500) by their winning rate (0.45).
- 7500 * 0.45 = 3375 dollars

Step 3: Subtract your customers' expected winnings from your expected winnings to find the expected profit.
- Expected profit = Your expected winnings - Your customers' expected winnings
- Expected profit = 4125 dollars - 3375 dollars
- Expected profit = 750 dollars

Therefore, you would expect to have a profit of $750 if 7500 games are played. The correct answer is option 3.

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However, if we assume that one option is missing, then based on the options provided, it could be "sales coupons."

Sales coupons are a type of sales promotion that offers discounts or other incentives to encourage customers to make a purchase. While sales promotion is mentioned as part of the promotion mix, the question does not specify the use of sales coupons specifically.

Advertising, personal selling, and sales promotion are all commonly used in the promotion mix in the healthcare industry.

Advertising: This involves using various media channels such as television, radio, print, and online to promote a product, service, or brand. Advertising is a mass communication tool and is used to create awareness, generate interest, and persuade target customers.

Personal selling: This involves one-on-one communication between a salesperson and a potential customer. Personal selling is used to build relationships, answer questions, and persuade the customer to make a purchase.

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Target's donation of 5% of its annual income to community support is an example of D) corporate philanthropy

Corporate philanthropy would be demonstrated by Target, which donates 5% of their yearly revenue to community assistance. The practise of a business giving money, resources, or services to nonprofits or community organisations as part of its corporate social responsibility (CSR) activities is known as corporate philanthropy.

Donations to non-profit organisations, charities, healthcare organizations, educational institutions, or other community-focused programs and initiatives fall under this category. Target participates in corporate philanthropy as a method to positively impact the areas it works in and show its commitment to social responsibility by contributing a portion of its profits to assist neighborhood projects.

Complete Question:

Target's donation of 5% of its annual income to community support is an example of ________.

A) corporate responsiveness

B) social screening

C) social engineering

D) corporate philanthropy

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Employee assistance programs (EAPs) are aimed at helping employees restore resources that have been diminished by their work environment.

These programs provide confidential counseling and support services to employees who are dealing with personal and work-related issues. EAPs offer a range of services, such as mental health counseling, substance abuse treatment, financial counseling, and legal assistance.

By providing employees with access to these services, EAPs help them to reduce stress and improve their overall well-being. The goal of EAPs is to help employees overcome the challenges they face, so they can return to work refreshed and ready to perform their job duties. EAPs can also benefit employers by reducing absenteeism and turnover, improving productivity and morale, and lowering healthcare costs.

Overall, EAPs are a valuable resource for employees who need support to manage the demands of their job and personal life.

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A credit score is a three-digit number that represents a person's creditworthiness.

An individual's credit score takes into account their payment history, credit utilization, length of credit history, types of credit utilized, and new credit applications.

Lenders and financial institutions utilize this score to gauge an individual's credit risk when processing loan or credit applications and determining interest rates. An outstanding credit score is deemed as 670 or higher, while a weaker score falls below 580.

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A subsidy on domestic oranges is a positive incentive for domestic producers. This is because a subsidy on domestic oranges financially supports and encourages domestic producers to produce more oranges, benefiting their business and the overall domestic market.

A positive incentive for domestic producers is a subsidy on domestic oranges. When the government provides subsidies to domestic producers, it effectively reduces the costs of production and increases their profitability. This creates an advantage for domestic producers over their foreign counterparts, which can help them compete more effectively in the market.

In the case of a subsidy on imported cars, the incentive is actually for foreign producers as they will receive the subsidy, making it easier for them to sell their products in the domestic market at lower prices. On the other hand, a tariff on cars would increase the price of imported cars, making domestic cars more attractive to consumers.

However, this may not necessarily be a positive incentive for domestic producers as it could lead to complacency and lack of innovation since they have a captive market due to higher import costs.

Similarly, a tariff on clothes would also increase the price of imported clothes, making domestic clothes more attractive to consumers. However, this may also not be a positive incentive for domestic producers in the long run as it could lead to increased prices and lack of competition, which could lead to a decline in quality and innovation.

In conclusion, a subsidy on domestic products is the most positive incentive for domestic producers as it encourages innovation, reduces costs, and increases profitability, which can help them compete effectively in the market.

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As our company prepares to introduce tighter health and safety measures, it is important to recognize the benefits that these measures will bring to our workplace.

By ensuring that all employees are following strict safety protocols, we can reduce the risk of accidents and injuries on the job. This not only protects our employees, but also ensures that our business operations are not disrupted by preventable accidents. In addition to improving safety, tighter health measures can also have a positive impact on the overall health of our employees. By promoting healthy habits and providing resources for wellness, we can help our employees maintain good health and prevent chronic conditions. This can lead to higher productivity, less absenteeism, and a happier, more engaged workforce. Overall, the introduction of tighter health and safety measures is a necessary step for our company. By prioritizing the safety and health of our employees, we can create a more productive and positive work environment for everyone.

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Managers have a variety of responsibilities when it comes to running a business, including generating revenues, controlling costs, and efficiently managing assets.

In an investment center, which is typically a large division of a corporation, managers are responsible for maximizing profits with the assets they are given.

An investment center is treated almost like a stand-alone company, with the division manager having broad responsibility for the use of assets.

This means that the manager must make decisions about how to allocate resources and investments, as well as how to generate revenue and control costs. The goal is to generate as much profit as possible with the resources available.

To achieve this goal, managers must have a thorough understanding of the business environment and the division's operations.

They must be able to identify areas where revenue can be increased and costs can be controlled.

This may involve developing new products or services, improving production processes, or streamlining administrative tasks.

In addition, managers must be able to identify and manage risks, such as market fluctuations or changes in customer demand.

Efficiently managing assets is another critical responsibility for managers in an investment center.

This includes managing physical assets such as equipment and facilities, as well as financial assets such as cash and investments.

Managers must make sure that assets are being used effectively and that any excess capacity is being utilized to generate revenue.

They must also make sure that assets are being maintained properly and that they are being replaced or upgraded as necessary.

Overall, managers in an investment center are responsible for generating as much profit as they can with the assets they are given.

This requires a combination of revenue generation, cost control, and efficient asset management. By achieving these goals, managers can contribute to the success of the division and the overall corporation.

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The answer to the question "All of the following are true of e-business strategy except" is option B, "A well-designed e-business strategy should be able to bring a company directly from Stage 2 to Stage 4 of supply chain development."

E-business strategy is the process of aligning a company's objectives and resources with the use of electronic communication and information technology to achieve its goals. The strategy involves several stages, including interorganizational connectivity and supply chain development.

Option A is true of e-business strategy because before seeking partners, a nucleus firm needs to upgrade its systems and organization to the desired level of interorganizational connectivity. This is necessary to ensure that the company can communicate effectively with its partners.Option C is true of e-business strategy because interorganizational strategy should begin with a nucleus firm that determines how it intends to connect with its partners. This is important because the success of an e-business strategy depends on effective communication and collaboration between partners.Option D is true of e-business strategy because successful linking of organizational strategy and e-business strategy often requires using advanced optimization tools such as supply chain event management (SCEM). These tools help companies to optimize their supply chain processes, improve communication, and reduce costs.

Option B is not true of e-business strategy because a well-designed e-business strategy cannot bring a company directly from Stage 2 to Stage 4 of supply chain development. The stages of supply chain development are sequential and require a gradual improvement in interorganizational connectivity and collaboration.

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The taxpayer who recognizes the income depends on the source and nature of the income, and in some cases, multiple taxpayers may be responsible for reporting the income.

The taxpayer who recognizes the income depends on the source and nature of the income. For example, if the income is from employment, then the employee recognizes the income. If the income is from investments, then the investor recognizes the income. In the case of a business, the business owner recognizes the income.

It is important to note that in some cases, income may be recognized by multiple taxpayers. For instance, if a married couple files a joint tax return, both spouses recognize the income earned by either spouse.

Furthermore, certain types of income may be subject to special tax treatment or reporting requirements. For instance, rental income from a property may be subject to self-employment taxes if the owner is actively involved in managing the property. Additionally, income from foreign sources may be subject to special reporting requirements, such as the Foreign Account Tax Compliance Act (FATCA).

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Tiger Golf Supplies has $23 million in earnings with 8 million shares outstanding. Its investment banker thinks the stock should trade at a P/E ratio of 31, with an underwriting spread of 2.5 percent. The price $91.29 and net amount received by firm will be $712.08 million.

To solve this problem, we need to first calculate the earnings per share (EPS) of Tiger Golf Supplies. To do this, we divide the earnings of $23 million by the number of shares outstanding, which is 8 million. This gives us an EPS of $2.875.

Next, we need to determine the price to the public based on the investment banker's recommended P/E ratio of 31. To do this, we multiply the EPS by the P/E ratio: $2.875 x 31 = $89.125. However, we need to take into account the underwriting spread of 2.5 percent. To do this, we multiply the price to the public by 1.025: $89.125 x 1.025 = $91.29, Therefore, the price to the public should be $91.29.

To calculate the net amount received by the firm, we need to take into account the underwriting spread and the number of shares outstanding. The underwriting spread is 2.5 percent of the price to the public, which is: $91.29 x 0.025 = $2.28

So, the firm will receive $91.29 - $2.28 = $89.01 per share. Multiplying this by the number of shares outstanding, we get: $89.01 x 8 million = $712.08 million, Therefore, the firm will net $712.08 million from the sale of its shares.

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A. Written communication is particularly effective for communicating a message to large audience. Written communication is any written message that two or more people exchange.

This is because written communication allows for the message to be disseminated to a large group of people at once. However, it can also be effective for smaller and private audiences, depending on the nature of the message and the intended outcome. Ultimately, the key to effective communication, whether written or otherwise, is to consider the needs and preferences of the audience and to craft the message accordingly. Written communication is typically more formal but less efficient than oral communication. Examples of written communication are Emails, Text messages.

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A sole proprietorship is a type of business structure in which an individual owns and operates the business.

One of the key characteristics of a sole proprietorship is that it has a limited life span, meaning that the business ends if the owner dies, retires, or otherwise leaves the business. However, there are a few ways that a sole proprietorship can continue beyond the owner's departure. Firstly, the owner can transfer ownership to another individual, such as a family member or a trusted employee. This can be done by selling the business or by transferring ownership through a will or trust. Secondly, the owner can convert the sole proprietorship to a different type of business entity, such as a partnership or corporation. This would allow the business to continue operating even if the owner is no longer involved.

Finally, the owner can take steps to ensure that the business can continue without them, such as creating a succession plan or training a successor. This would allow the business to continue even if the owner is no longer able to run it. In summary, while a sole proprietorship has a limited life span, there are ways to ensure that the business can continue beyond the owner's departure.

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The margin of error that corresponds to a 90% confidence interval for the proportion of married people who would remarry their spouse is 0.048.

The margin of error that corresponds to a 90% confidence interval for the proportion of married people who would remarry their spouse can be found using the formula:

margin of error = z* * sqrt(p*(1-p)/n)

where z* is the z-score corresponding to a 90% confidence interval, p is the proportion of married people who would remarry their spouse (which is 127/150 or 0.847), and n is the sample size (which is 150).

Using a standard normal distribution table, we can find that the z-score corresponding to a 90% confidence interval is approximately 1.645.

Plugging in the values, we get:

margin of error = 1.645 * sqrt(0.847*(1-0.847)/150) = 0.048

Therefore, the answer is 0.048.

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(a) Annual depletion allowance using cost depletion method:

Total cost of the deposit = $3,200,000

Total recoverable product = 150,000 tonnes per year x 15 years = 2,250,000 tonnes

Depletion rate per tonne = Total cost of deposit / Total recoverable product

Depletion rate per tonne = $3,200,000 / 2,250,000 tonnes = $1.42 per tonne

Annual depletion allowance = Depletion rate per tonne x Annual production

Annual depletion allowance = $1.42 per tonne x 150,000 tonnes = $213,000

Therefore, the annual depletion allowance using cost depletion method is $213,000.

(b) Annual depletion allowance using percentage depletion method:

Option 1: 15% of gross revenues

Annual depletion allowance = 15% of gross revenues

Annual depletion allowance = 15% x $14.50 per tonne x 150,000 tonnes = $326,250

Option 2: Taxable income limitation basis

Net income per tonne = Gross revenue per tonne - Cost per tonne

Net income per tonne = $14.50 per tonne - $2.75 per tonne = $11.75 per tonne

Taxable income per tonne = Net income per tonne - Depletion rate per tonne

Taxable income per tonne = $11.75 per tonne - $0 = $11.75 per tonne (since there is no depletion rate under this option)

Taxable income per year = Taxable income per tonne x Annual production

Taxable income per year = $11.75 per tonne x 150,000 tonnes = $1,762,500

Maximum allowable depletion = 50% of taxable income

Maximum allowable depletion = 50% x $1,762,500 = $881,250

Therefore, the annual depletion allowance using percentage depletion method based on a taxable income limitation basis is $881,250.

(c) The percentage depletion method based on gross revenues is allowed to be applied, under law. This is because the percentage depletion method based on a taxable income limitation basis can only be used if it results in a larger depletion allowance than the one calculated using the percentage depletion method based on gross revenues. In this case, the depletion allowance calculated using the taxable income limitation basis ($881,250) is larger than the one calculated using the gross revenues method ($326,250), so the taxable income limitation basis cannot be used.

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The type of sampling in which every element has a known chance of being selected for study is (e) Probability sampling. In probability sampling, each member of the population has a known and equal chance of being included, allowing for a representative sample and generalizable results.

The correct answer is "c) Random". In random sampling, every element in the population has an equal chance of being selected for the study. This type of sampling helps to ensure that the sample is representative of the population and that any conclusions drawn from the study can be generalized to the larger population. Random sampling is commonly used in research studies, particularly in quantitative research, as it helps to increase the reliability and validity of the results. Researchers may use different methods of random sampling, such as simple random sampling, systematic random sampling, or cluster random sampling, depending on the nature of the population being studied and the research question being investigated. Overall, random sampling is a key component of rigorous scientific research and helps to ensure that the study findings are accurate and reliable. This sampling method is particularly important in studies where generalization of findings to a larger population is essential. Examples of probability sampling methods include simple random sampling, systematic sampling, and stratified sampling.

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In this scenario, where arrivals to a queue are random and service time variation is high, a 15% capacity buffer is recommended.

This means that A- The planned server utilization will be 85%, allowing for a buffer to accommodate unexpected fluctuations in demand and maintain an efficient system.

This buffer ensures that the planned server utilization will be 85%, which is considered an appropriate level of utilization for a system with high variability in service times and random arrivals.

By maintaining this buffer, the system can handle sudden increases in demand without causing delays or reducing the quality of service.

Without a buffer, if the demand were to suddenly increase, the system would have to work at full capacity, leading to delays and decreased quality of service.

However, with a buffer in place, the system can absorb the sudden increase in demand without overloading the system and maintain the level of service quality.

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A marketer trying to stimulate consumer purchasing and dealer interest by means of short-term activities is likely to use promotions as an incentive.

Promotions refer to short-term marketing strategies designed to encourage consumers to make a purchase or take a particular action. Promotions can take many forms, including discounts, coupons, contests, giveaways, samples, rebates, and loyalty programs. The goal of these incentives is to create a sense of urgency and motivate consumers to act quickly before the promotion expires. Promotions are often used in conjunction with advertising to create a more effective marketing campaign.

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Under the Straight-line depreciation method, the machine's depreciation for each year is $59,375 and the total depreciation of all years combined is $237,500.

To compute the depreciation for each year (and the total depreciation of all years combined) for the machine under the Straight-line depreciation method, proceed as follows:

Calculate the total depreciable cost
Total depreciable cost = Initial cost - Salvage value
Total depreciable cost = $257,500 - $20,000
Total depreciable cost = $237,500

Determine the annual depreciation expense
Annual depreciation expense = Total depreciable cost / Useful life
Annual depreciation expense = $237,500 / 4
Annual depreciation expense = $59,375

Repeat the annual depreciation expense for each year
Year 1: $59,375
Year 2: $59,375
Year 3: $59,375
Year 4: $59,375

Total depreciation of all years combined = $59,375 x 4 = $237,500

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It is crucial to create a capital budget in order to determine whether or not the business is feasible.

Finding the Net Present Value of the Investment is what capital budgeting entails; if it is positive, the project is feasible, and vice versa.

Step 2 :

Find out how much money you need to invest initially to launch your business.

Find out how much money you will make each year in cash flows.

To arrive at the present value of such cash flows, determine the suitable discounting rate and extract the cash flows year by year.

Put in a flow Outflow equals the Present Value of Cash Inflows. - Initial expenditure

If the outcome is favourable, activities can begin; otherwise, a new business strategy must be developed.

Businesses utilise the capital budgeting process to assess possible big projects or investments. Before they are approved or rejected by management, capital budgeting is typically required for initiatives like constructing a new plant or investing a sizable amount of money in a third party business.

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Assuming that Garment Company has these account balances: Purchases $700,000; Purchase Returns and Allowances $50,000: Carriage Inwards $20,000; Carriage Outwards $ 10,000. The cost of goods purchased is $670,000. The correct answer is option b.

To find the cost of Goods Purchased for the Garment Company, we need to consider the account balances for Purchases, Purchase Returns and Allowances, and Carriage Inwards.

1. Start with the Purchases balance: $700,000
2. Subtract the Purchase Returns and Allowances: $700,000 - $50,000 = $650,000
3. Add the Carriage Inwards: $650,000 + $20,000 = $670,000

The cost of Goods Purchased is $670,000. Therefore, the correct answer is (b) $670,000.

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