Answer:
b. A debit to Deferred Inflows: Property Taxes; and a credit to Revenues Control.
Explanation:
In accrual accounting revenues and expenses are not recognised till they are earned or incurred.
Deferred revenue is the income for goods that have not been delivered yet. For example if a business made sales of books worth $500 but have not delivered the goods to the buyer, the income realised is credited to deferred income. When the books have been delivered the income can now be recognised and moved to revenue account.
So in the scenario given the property taxes have not been collected yet and Soni's recorded as Deferred inflow from the previous year. When the taxes are collected we debit Deferred Inflow- Property taxes and credit Revenue Control.
Answer:
horizontal; vertical
Explanation:
A merger is called horizontal if the company takes a competitor. This will result in the company taking the current market share of the competitor and widen its operational range, thus its called horizontal.
A merger will be called vertical if the company joins with the supplier or retailer. Its called vertical since the two businesses located at the different production stages (either on top or bottom). This will help them become more efficient in making or delivering their product, help them to decrease the cost of production.
Explanation:
The journal entry is as follows
Amortization expense Dr $2.5 million
To Patent $2.5 million
(Being the amortization expense is recorded)
The computation is shown below:
The annual amortization is
= $9 million ÷ 9 years
= $1 million
So, the amortization for four years from 2017 to 2021 is $4 million
Now the unamortized value is
= $9 million - $4 million
= $5 million
And, the remaining life is 2 years (6 years - 4 years)
So, the amortization expense is
= $5 million ÷ 2 years
= $2.5 million
Answer:
Franchising
Explanation:
Since Marianna wants to open additional locations, but she doesn't have a lot of start-up capital, the consolidation strategy for fragmented industries that she could utilize is franchising
Franchising is a business expansion model and marketing concept which can be adopted by an organization that does not have to put down additional capital for expansion.
The expanding firm (a franchisor) only needs to license its know-how, procedures, intellectual property, and the use of its business model, brand, and rights to sell its branded products and services to a franchisee.
The franchisee is the party to bring the capital for the expansion.
Much explains why most restaurants use this same strategy, e.g. KFC, Subway and McDonald's;
Explanation:
Because that's how God made it