Answer:
c. debit to Interest Expense of $1,000.
Explanation:
The adjusting entry is as follows:
Interest expense Dr ($50,000 × 6% × 4 months ÷ 12 months) $1,000
To Interest payable $1,000
(Being the interest expense is recorded)
Here interest expense is debited as it increased the expense and credited the interest payable as it also increased the liabilities
Therefore the correct option is c.
Answer: Option B
Explanation: Opportunity cost refers to the of loss of profit when an individual or firm chooses one alternative over other.
The statement in the given case, depicts the opportunity cost one has to pay of using the scarce resources that could be sued on different alternatives.
The lunch is never free depicts that one could have used it in other alternatives that may have produced some economic benefits.
Hence, the correct option is B.
Answer:
a. The DVDs, CDs, albums, and video games held for sale to customers.
Classification: Assets
b. A long-term loan owed to Citizens Bank.
Classification: Liability
c. Promotional costs to publicize a concert.
Classification: Expense
d. Daily sales of merchandise sold
Classification: Revenue
e. Amounts due from customers
Classification: Asset
f. Land held as an investment
Classification: Asset
g. A new computer purchased for office use.
Classification: Expense
h. Amounts to be paid in 10 days to suppliers
Classification: Liability
i. Amounts paid to property owner for rent.
Classification: Expense
Answer:
utilitarian approach.
Explanation:
Cherries on Top is a national ice cream shop and is struggling financially to keep up with the bigger chains. The top executives have decided to close all the stores in the Northeast and Texas, as that will give them an additional one million dollars to put into marketing. This executive is practicing the utilitarian approach.
Utilitarianism can be defined as an ethical moral theory that offers anyone a relatively direct method for enhancing choices and making decisions about the right course of action for any particular situation.
Basically, the utilitarian approach analyzes and measure an action in terms of its outcome or consequences; by determining the net benefits and costs to all stakeholders of an organization individually.
The main purpose or focus of the utilitarian approach is to achieve the best possible outcome or results for the overall success of the business while creating the least amount of harm, loss, damage or suffering.
<em>Hence, the executive of Cherries on Top is practicing the utilitarian approach. </em>