Answer:
b. Advertising promotional activity
Explanation:
Advertising promotional activity -
Promotional activity is employed , in order to publicize about the goods and services produced by a company or firm , is referred to the method of promotional activity .
The promotional activity can be done by various methods , like television , radio , newspaper etc .
Advertising promotional activity , is the most common and one of the cheapest form of promotional activity , which is done with the help of online as well as offline platform , like newspaper , websites , ,magazines etc .
Hence , from the given scenario of the question ,
The correct option is b. Advertising promotional activity .
Answer:
Accounting entity concept:
The basic idea behind this concept is that business and the owner are two different entities. Their transactions are to be recorded separately.
Going concern concept:
The concept is to have a view that the company is going to stay solvent in the future. That is we will have another accounting year in the future unless and otherwise we have evidence to the contrary.
Cost-benefit constraint:
It limits the amount of time to research the cost of an event if its benefits outweighs. In case of an immaterial event if its cost outweighs the benefits then that event can be forgone.
Expense recognition (matching principle):
The matching principle states that all the expenses are to be recorded based on the year they have been incurred rather than on the time they are paid.
Materiality constraint:
It states that any event that changes or effects the decision making of the user of financial statement should be recorded and vice versa.
Revenue recognition principle:
It states that the revenue is to be recorded in the period in which it has been incurred instead when it is collected. Accrual basis gives a more clear picture of the performance of the company.
Full disclosure principle:
It requires to disclose any information to be mentioned in the foot notes of the financial statements of the company that might affect the user of financial statement. This helps in identifying the methods used for accounting practices and any event that might effect the organisations future existence.
Cost principle:
To record the transactions based on their historical costs rather than making adjustments for fluctuations in market place.
Capital budget is the budget for major investment expenditures. Capital budgeting is the process of planning whether a certain investment will be a long term investment or a short term investment. Expenditure is the amount of money spent for a certain investment.
Answer:
the nominal interest rate is 7%
Explanation:
The calculation of the nominal interest rate is given below:
As we know that
Nominal interest rate is
= Real interest rate + Inflation rate
So,
The nominal interest rate should be
= 5% + 2%
= 7%
Hence, the nominal interest rate is 7%
The same is to be considered and relevant
