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4 years ago

Stella, Inc. purchased 75 telescopes for $25 each from Luna Co. When they unpacked the telescopes, Stella found

Business

1 answer:

cupoosta [38]4 years ago

8 0

Answer:

A. The company would debit the Allowance account instead of Purchase Returns.

Explanation:

In the management of purchases transactions, a company will maintain several other accounts such as purchase returns and purchases allowance.

Purchases allowance will include allowances such as discount received and other compensations from suppliers. The allowances reduce the net value of the purchases. i.e., when calculating the net purchases, one has to deduct the purchases allowed amount. When the business receives a purchase allowance, the amount will increase the purchases allowance account. The accountant will, therefore, debit that account.

Purchases returns are goods that the company had purchased from suppliers but have returned them for some reason. They could be defective or inappropriate.

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chubhunter [2.5K]

Answer:

False

Explanation:

The situation above is called the "pitch." This is a process of persuasion whereby people present their ideas to their potential clients or investors. This is done in order to achieve a particular purpose. In the situation above, the ad agency's purpose is to win the potential client's account. In order to become successful in pitching ideas, one has to consider some pointers such as getting to the point fast, using a message map, not using too many slides and the like.

So, this explains the answer.

5 0

4 years ago

The following expenditures relating to plant assets were made by Watkens Company during the first 2 months of 2014.Paid $7,000 o

Zina [86]

Answer:

(a) The following points explain the application of the cost principle to plant assets.

1.Under the cost principle, the acquisition cost for a plant asset includes all expenditures necessary to acquire the asset and make it ready for its intended use.

2.Cost is measured by the cash paid in a cash transaction or by the cash equivalent price paid when non cash assets are used in payment.

3.The cash equivalent price is equal to the fair market value of the asset given up or the fair market value of the asset received, whichever is more clearly determinable.

(b) Following is the list of transactions and items to be debited.

1. Land

2. Factory Machine

3. Delivery Truck

4. Land Improvements

5. Delivery Truck

6. Factory Machine

7. Prepaid Insurance

8. License Expense

Explanation:

8 0

4 years ago

MC Qu. 116 CWN Company uses a job order costing... CWN Company uses a job order costing system and last period incurred $90,000

ANTONII [103]

Answer:

65%

Explanation:

Calculation to determine its predetermined overhead rate for the next period should be:

Using this formula

OH rate = Estimated overhead next period/direct labor

Let plug in the formula

OH rate = $65,000/$100,000

OH rate = 65%

Therefore If CWN bases applied overhead on direct labor cost, its predetermined overhead rate for the next period should be: 65%

4 0

3 years ago

Kara voluntarily quit her job as an insurance agent to return to school full time to earn an MBA degree. With degree in hand, sh

Virty [35]

Frictionally unemployed describes their employment status.

Explanation:

Frictional joblessness is constantly present in the economy, coming about because of transitory changes made by laborers and bosses. Frictional joblessness is a piece of the general work picture, including common joblessness, which is the base joblessness rate in an economy because of monetary powers and willful development of work.

In any case, common joblessness mirrors the quantity of laborers that are not utilized as a result of an absence of ability or were supplanted by innovation. Frictional joblessness, then again, is from intentional moves by laborers yet is remembered for common joblessness since it speaks to the base degree of joblessness in an economy.

The frictional joblessness rate is determined by partitioning the laborers effectively searching for employments by the complete work power. The laborers effectively searching for employments are ordinarily arranged into three classifications: laborers who found employment elsewhere, individuals coming back to the workforce, and new participants.

Ongoing alumni from school or first-time work searchers may do not have the assets or proficiency for finding the organization that has the activity that is accessible and reasonable for them. Thus, they don't take other work, incidentally waiting for the better-paying employment.

4 0

3 years ago

As a component of real estate value, the principle of substitution states that

k0ka [10]

Answer:

a. If two similar properties are for sale, a buyer will purchase the cheaper of the two.

Explanation:

The principle of substitution justifies the idea that the maximum value of a property will be set by the selling price of an equally valuable and desirable substitute property. In this case of property sale, if an area has two similar houses and one is being sold for $912,000 and the other is priced at $105,000, buyers will most likely go for the cheaper one. There is no reason to pay more money if they will be getting a similar property at low cost.

3 0

3 years ago