Answer:
a. Revenues - These will increase by $5 million to represent the entire value of the order.
b. Earnings. - Increase by $3 million
Earnings in this case are revenue less the cost of inventory which will be;
= 5 - 2
= $3 million
c. Receivables - Increase by $4 million
The customer paid $1 million upfront which means that they still owe $4 million out of the $5 million. This will go to the receivables account to show that the customer owes the business.
A bank savings account is one simplest type of bank account. It allows you to keep your money safely while earning through interest per month. Money in a savings account is useful for emergencies since they are insured. You also get a card which enables you to withdraw or deposit money into your account. Parent's usually take this type of account for their children for future purposes.
Answer:
IBM could either diversify by the strategy of market penetration, which consists in increasing the market share in a particular sector (in this case, cloud computing) through more marketing efforts.
Or it could integrate horizontally, acquiring a possible competitor that is more advanced in the cloud-computing business. Or even a start-up with good prospects, because with the amount of capital that IBM has, it could more easily expand the start-up operation as a new internal business division.
Answer:
$70 per unit.
Explanation:
Based on the information given we were been told that the market price of X costs the amount of $70 per unit which simply means that market price exists, based on this the transfer price of X in a situation were each division is been treated as a profit making center will be the market price of $70 per unit.
Answer:
The correct answer is letter "A": direct-marketing.
Explanation:
Direct-marketing is a type of advertising that implies transmitting information about a product, service or entity directly to customers. Most of the time the promotional information is prompted without intermediaries but some times marketing agencies are hired for that specific purpose.
