The qualifications of the person regarding the task
Answer:
Journal Entry
Explanation:
1. There are two obligations in this contract
a. keyboard
b. Customer option for future discount
2. Cash Dr, $69,700
To Deferred revenue - keyboard $66,215
To Deferred revenue - discount coupon $3,485
(Being cash is recorded)
Working note:-
Keyboards = 4,100 × $19
= $77,900
Option = $41,000 × (0.25 - 0.05) × 0.50
= $4,100
Allocation
For keyboard
= $77,900 ÷ ($77,900 + 4,100)
= 0.95
Deferred revenue Keyboard = $69,700 × 0.95
= $66,215
Option = 4,100 ÷ ($77,900 + 4,100)
= 0.05
Deferred revenue - discount coupon = $69,700 × 0.05
= $3,485
3. Cash Dr, $69,700
To Deferred revenue Keyboard $69,700
(Being cash is recorded)
Answer: A. Developing a product that is easy to use and meets a customer’s needs.
Answer:
The question is missing the options which are below:
A Real risk-free rate differences.
B Tax effects.
C Default risk differences.
D Maturity risk differences.
E Inflation differences.
The correct answer is option C,default risk differences.
Explanation:
Default risk is the increase in return given to an investor to compensate the investor for the likely losses that may arise due to the inability of the borrower to make funds available to the investor on the maturity date or even in required amount.
Different debt instruments have different default risk depending on their credit rating as rated by international rating agencies.Such rating is a function of many factors,which includes:
Balance sheet position
Profitability
Liquidity strength of the company
Macro-economic factors and some others.
Liquidity refers to the ability of the company to settle obligations such as repayment of bonds and interest when due.
Invariably,liquidity has a higher impact in determining credit rating as well as default risk of an instrument.
Double entry, a fundamental concept underlying present-day bookkeeping and accounting, states that every financial transaction has equal and opposite effects in at least two different accounts. It is used to satisfy the accounting equation:
Assets
=
Liabilities
+
Equity
Assets=Liabilities+Equity
With a double entry system, credits are offset by debits in a general ledger or T-account.
So debit is the answer
