Answer:
A) True
Explanation:
Multilevel marketing is used by companies that engage in direct sales marketing and where each new salesperson or distributor must recruit more sales people to expand their activities. Some of the most famous multilevel marketing firms in the US are Avon and Herbalife.
The salesperson or distributor earns a fraction of the sales commissions that his/her recruited sales people sell. It is called the distributor's downline, and is shaped like a pyramid. In some countries this type of business is illegal because it works like a Ponzi scheme where new salespeople are recruited every time and in order to start working they must buy a certain amount of products. So a large percentage of the sales are made to other salespeople instead of customers.
Answer and Explanation:
The Journal entries are shown below:-
Interest expense Dr, $316,800
Premium on bonds payable Dr, $19,200 ($96,000 ÷ 5)
To Interest payable $336,000 ($4,800,000 × 7%)
(Being interest expense and bond premium amortization is recorded)
Here we debited the interest expenses and premium on bonds as it increased the expenses and we credited the interest payable as it also increased the liabilities
Answer:
Equivalent annual cost method
Explanation:
Equivalent annual cost method is a method used to choose between two projects with an unequal life span
The decision rule is to choose the product with the higher Equivalent annual cost
Equivalent annual cost method is better for making this decision because if net present value is used, the project with the higher useful life would be chosen. this does not mean it is more profitable
Answer:
Ball can certainly hold Sullivan to a contract for sale of the land. Sullivan in his reply to Ball's enquiry offered to sell the forty-acre tract of land at $60,000 and nothing less. Ball accepted this offer by Sullivan by stating his acceptance.
These exchanges of offer and acceptance meet the terms of a valid contract. Therefore, Ball can always hold Sullivan for contract enforcement.
Explanation:
In making a valid contract, offer and acceptance are key ingredients, with specific consideration. Since the two parties, Ball and Sullivan are agreed on the consideration and have exchanged offer and acceptance, the validity of the contract is enhanced thereupon.
Answer:
C. 66,000
Explanation:
Ending Work in Process (WIP) = Beginning Work in Process + Units Started into Production - Units Completed and Transferred
Ending WIP = 6,000 * 100% + 60,000 - 50,000 = 16,000
Equivalent Units of Production (EUP) = Units Completed + Units Ending WIP x % of conversion
EUP = 50,000 + 16,000 * 100 = 66,000
