Answer:
Effect of Transaction on Cash Flows
Effects Amount
1. Cash Payment $239,000
2. Cash Receipt $252,000 (12000*$21)
3. Cash Receipt $91,400
4. Cash Payment $491,000
5. Cash Payment $86,000
6. Cash Receipt $188,100 (190,000*0.99)
7. Cash Payment $353,400 (6,200*$57)
8. Cash Payment $36,100 [1.90*(23,000-4,000)]
Answer:1. Make provision for warranty claims.
2. Disclosure of contingent liability
3. No cost should be recorded.
Explanation:
Warranty is an assurance made by firms to make good any agreed loss that is incurred by the customers in usage of goods and services whiting the period of the warranty. Since an estimation can be made based on firms history of sales a provision has to be made for possible warranty.
Since it's only probably that a loss will be Incurred by the firm by going into the contract and the financial statement has not been issue the firm should made a contingent liability disclosure in the report.
The self insurance is not a contract with a third party, in this vein no cost will be accrued until the loss is actually suffered.
Answer:
True
Explanation:
When a company successfully offers a product or few products to customers, it tends to expand the range of products it has to offer.
For a <u>company to increase its range of products successfully, it has to realize that it must make corresponding changes to its processes to accommodate the addition of new products.</u>
However <em>oftentimes, companies do not make the necessary changes to their process strategy when expanding their product offerings.</em>
For volume and lift in a blow dry style, a round brush can be used.
Answer: b. Marginal revenue is less than average revenue
Explanation:
Marginal revenue is the extra revenue received by selling one more unit of a good while Average revenue is the revenue generated on average by all units sold thus far.
If the monopolist has to reduce prices to sell more goods then it would mean that for every unit sold, the price would have reduced compared to the price of the last unit which translates to less revenue coming in per unit compared to the last unit.
On the other hand, on average, the higher prices of the earlier goods sold would keep the average revenue higher than the additional revenue (marginal revenue).
