.E) This would be the correct answer
Answer:
There is no entry to be made on April 17, 2014
Explanation:
Following The accrual principle - an accounting concept that requires accounting transactions to be recorded in the time period in which they actually occur, rather than the period in which the cash flows related to them occur or the transaction are received.
On April 17, 2014, Naughton Ltd. received an order from a customer for a delivery to be made in May 2014 and the delivery does not occur yet on that day. I should be occur in May 2014.
Therefore, there is no entry to be made on April 17, 2014. In May, when the company finish delivering, the entry would be made:
1. Debit Cash (or Accounts Receivable) $11,000
Credit Revenue $11,000
2. Debit Cost of goods sold $7,500
Credit Cash $7,500
The management of a company is responsible for the preparation and integrity of financial statements. These then get based on to accountants for tax purposes. Just as we keep records and "manage" our personal accounts for financial purposes, management does this for their corporation.
Answer: price leadership
Explanation: Price leadership is a circumstance where one business, typically the dominant one in its market, sets prices that its rivals follow closely.
This business is typically the one with the minimum cost of production, thus being able to outperform the prices charged by any rival who tries to set their prices below the price range of the market leader.
Rivals could increase prices than the cost leader, but this would likely lead to lower share of the market unless rivals were able to distinguish their goods adequately.
Hence from the above we can conclude that the given case depicts price leadership strategy.
Answer:
The correct answer is stockkeeping unit.
Explanation:
In the field of inventory management, an inventory maintenance unit or SKU refers to a specific item stored in a certain place. The SKU is considered the most disaggregated level when talking about inventory. It is assumed that the units stored in the same SKU are indistinguishable. The introduction of the SKU concept simplifies most inventory control operations. SKUs are sometimes used to designate intangible items, as guarantees; however, in this article we will focus on SKUs that designate tangible items.
