Answer:
Klear Manufacturing
At the inception of the sale and leaseback, Klear should debit cash and credit
c. lease liability.
Explanation:
a) Data and Calculations:
Debit Cash $1.4 million Lease Liability $1.4 million
Debit ROU asset $1.4 million Credit Plant $1.2 million Credit Gain from Sale $0.2 million
b) The sale and leaseback creates a right of use asset as well as a lease liability. Therefore, the Cash account is debited for the cash receipts from the transaction and the Lease Liability is credited. Also debited is the right of use asset with corresponding credits to the Asset account and Gain from Sale.
Answer: The correct answer is "d) The accounts payable manager issues purchase orders.".
Explanation: A member of a company cannot charge with 2 functions of authorization and maintenance of related records, that is to say it is incompatible because it should not have the possibility of committing errors or hiding frauds, in that case it would cause a weakness, that is why the authorization and the Maintenance of related records must be separate functions.
Answer:
The first 3 transactions only.
Explanation:
Accrual basis of accounting requires that expenses and revenue are recognized in the books as soon as they are incurred and earned respectively.
The cash basis required that transactions of expenses and revenue be recognized only when cash has been paid and received respectively.
Considering the transactions using cash-basis accounting,
1. Pay employees' salaries for the current period- Yes an expense will be recognized.
2. Pay rent in advance - Yes an expense will be recognized for the full amount paid.
3. Pay dividends to stockholders in the current period - Yes an expense will be recognized for the full amount paid.
4. Receive (but do not pay) a utility bill - No, this will be recognized when cash is paid
5. Use supplies previously purchased - This would have been recognized previously. No
The answer is <span>product popularity
</span><span>product popularity appeal refers to an marketing tactics that relied on the number of customer base in order to create a perception of good quality product.
In general, people who see a product with large customer base will believe that "That product must be good, since many people use and trust the product"</span>
Answer:
b. 3.70 percent
Explanation:
Expected rate of return of a stock, given probabilities, is calculated by summing up the product of probability of each state occurring by the expected return of the stock should that happen.
Expected rate of return = SUM (probability *return)
Boom;(probability* return) = (0.15* 0.10) = 0.015 or 1.5%
Normal ;(probability* return) = (0.70* 0.04) = 0.028 or 2.8%
Recession ; (probability* return) = (0.15* -0.04) = -0.006 or -0.6%
Next, sum up the expected return for each state of the economy to find the expected rate of return on this stock;
= 1.5% + 2.8% -0.6%
= 3.7%
Therefore, the correct answer is choice B.