Answer:
D. Debit to Dividends Payable.
Explanation:
The first thing we have to keep in mind is that dividends are liabilities, that is, they represent cash outflows for the corporation. In the example, we can distinguish two moments: the declaration of a cash dividend and its effective distribution. Next, we will analyze them from an accounting point of view:
- On July 15, 2014, Benson Company declared a cash dividend. In accounting terms, on that day the “Retained Earnings” account was debited. Remember that this account is the one that records the profits that the company has obtained to date. So, what was done was to <em>subtract</em> that part that is to be distributed among stockholders. This amount is then transferred to a current liability account called “Dividends Payable”. In this case, money was <em>added</em>, therefore, the account was credited.
- On August 15 dividends were distributed. That day, the "Dividends Payable" account was debited, or, in other words, its money was <em>discounted</em>, because it is now in the hands of shareholders.
Answer:
Product differentiation and advertising are profitable ventures only when:
the gain in total revenue outweighs the extra cost
Explanation:
When Company XYZ differentiates its product from competitors' through trademarks and other differentiating factors and embarks on advertising, it must watch out for cost overrun. The undertaking for the product differentiation and advertising should be able to generate more revenue than the costs. This will make Company XYZ determine that its differentiation and advertising make economic meaning by producing positive NPV.
Answer: Undercapitalization
Explanation:
Undercapitalization is defined as the situation where a person or entity of any kind does not have sufficient funds or capital to run their business and pay the costs it has. This type of situation usually occurs when the business is not selling the necessary amount of products or services to generate the amount of income necessary to meet all the payments it has.
When an entity or business is undercapitalization, in many cases they have had to take measures such as downsizing, fewer materials to create the product, or ultimately, if none of this works, having to close the business.
Answer:
The correct answer is letter "A": Shop for a mortgage.
Explanation:
After setting a budget and starting a housing fund, checking your credit report and scores, and accruing a certain amount of money to make possible acquiring a house, the next step implies being pre-approved by a mortgage lender. This will give you an idea of how much money a bank might approve to lend you to purchase the property. Thus, after this and finding a Real Estate agent, <em>you can start checking what houses are available for purchase according to what you can afford.</em>
Every individual or business wants to make profit this is done by providing goods and services that satisfy people's needs and wants.
<h3>What is a business?</h3>
A business is an organization that aims at making a profit by providing goods and services that are desired by individuals also known as customers.
Business meets a need and gets profit in return.
Therefore, A Business is defined as trying to earn a profit by providing goods and services that satisfy people's needs and wants.
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