Answer:
$0
Explanation:
Scott Company must record the warranty expense and liability regarding the products sold during the years that they occur. For example, the following journal entry must be made to record the warranty expense for year 1:
Dr Warranty expense 25,000
Cr Warranty liability 25,000
During year 2, they will record the warranty expense for that year:
Dr Warranty expense 20,000
Cr Warranty liability 20,000
That means that during year 3, the only warranty expense recorded will be the one related to the goods sold during that year.
Answer:
I would say that the answer is D. If he knows that people don't buy encyclopedia's, yet he stocks them, the store could lose money because no one would buy it.
Explanation:
Hope this helps. :D
Answer:
b. is the amount a consumer is willing to pay minus the amount the consumer actually pays.
Explanation:
Consumer surplus = willingness to pay less price of the good.
Let assume a student is willing to pay $30 for a book and the price of the book is $15. The student's consumer surplus is $30 - $15 = $15
I hope my answer helps you
Answer:
A) Valuable assets such as the company's reputation, the quality of its work force, and the strength of its management are not captured on the balance sheet.
Explanation:
As we know that the balance sheet records the assets, liabilities and the equity of the company. Now the main problem with the balance sheet is that the valuable assets such as reputation of the company, work force quality, management strength would not captured here as it only records the monetary transactions.
Therefore the correct option is a.
Answer:
a) the liability recorded when cash was received is decreased by the adjustment for the revenue being earned
Explanation:
When cash is received for revenue yet to be earned, it is called deferred revenue. The entries posted at this point is a Debit to Cash (an increase in cash balance) and a Credit to Deferred revenue (a liability account). When the revenue gets earned, it get recognized with a Debit to Deferred revenue (to reduce the liability as the obligation has been fulfilled resulting in revenue being earned) and a Credit to Revenue (P/L).
Hence, the right option is a) the liability recorded when cash was received is decreased by the adjustment for the revenue being earned.
