Explanation:
Consumers buy products for their own use, while businesses buy goods to use in their continuing activities and resell to consumers. Customers appetite and the need for manufacturing supplies force organizations to buy products in greater quantities than people.
Answer:
June 1 Sheldon Cooper invests $4,000 cash in exchange for shares of common stock in a small welding business.
Account Debited: Cash
Account Credited: Common Stock capital
2 Purchases equipment on account for $1,200.
Account Debited: Equipment
Account Credited: Accounts Payable
3 Pays $800 cash to landlord for June rent.
Account Debited: Rent expense
Account Credited: Cash account
12 Bills P. Leonard $300 after completing welding work done on account.
Account Debited: Accounts receivable
Account Credited: Service revenue
Answer: the correct answer is $70000
Explanation: the fair value of the shares given plus the fair value of the contingent consideration is the total amount paid by the buyer which is (20000 shares * $10 price per share) = $200000+$10000= $210000.
The gain of the transaction is registered as the net fair value of the acquiree that is $350000-$70000= $280000 less the sum paid by the Acquirer that is $280000-$210000= $70000.
The $15000 in direct acquisition costs are registered as period expenses and not relevant for the calculation of the gain of the transaction.
Yes , Judy and Kristy have an enforceable binding contract
Explanation:
Kristy Johnston, Judy Olsen, and Joyce Johnston, their mother, owned real estate as common buyers. After Joyce died, she left Kristy her one-third share in the house. Kristy sent Judy a letter in 2009 promising Judy to purchase or sell Judy's share in the property.
Judy accepted the sale bid from Kristy. Kristy then tried to refuse Judy's approval and to cancel her bid for sale. Judy lodged a Kristy lawsuit.
The court granted the summary judgment to Judy finding that a contract had been drawn up between the letters exchanged between Judy and Kristy which satisfied the frauds ' status. The Supreme Court ruled that the district court decided out that an enforceable arrangement was established by exchanging letters from the parties.
Answer: The correct answer is "a. the ability of management to use accruals to reduce the volatility of reported earnings over time.".
Explanation: Income smoothing refers to <u>the ability of management to use accruals to reduce the volatility of reported earnings over time.</u>
The smoothing of earnings is a practice that consists in reducing fluctuations in recognized income and, therefore, fluctuations in earnings. That is, the smoothing of earnings implies saving income in bonanza times to recognize them accountingly when income is meager.
