Answer:
a. by making long trips less expensive
b. by making long trips in less time
c. by opening up new trade markets
e. by increasing travel options
Explanation:
Answer:
the journal entry to record warranty expense is:
Dr Warranty expense 30,000
Cr Warranty liability 30,000
the journal entry to record actual expenses related to product warranties:
Dr Warranty liability 10,000
Cr Cash (or inventory, or wages payable) 10,000
Depending on what type of costs are incurred by the company, the account credited will vary, e.g. if units are replaced, then inventory must be credited, or if units are repaired and only labor is used, then wages payable or cash should be credited. Since the question doesn't give us a lot of details, I credited cash.
Answer: B. stockholders expropriate value from bondholders by selecting high-risk projects.
Explanation:
Bankruptcy simply means when an individual or business cannot pay back the funds that is owed to the creditor. When bankruptcy is declared by a particular business, the assets for the business are used in paying back the debt.
One of the indirect costs of bankruptcy is the effect that a potential bankruptcy has on the firm's decisions. The general result is that stockholders expropriate value from bondholders by selecting high-risk projects.
Therefore, option B is the answer.
Answer:
Customer lifetime value predicts how much profit is associated with a customer during the course of their lifetime relationship with a company.
Explanation:
It is important to manage customer relationships because customers provide a great deal of value to the company if they remain customers for many years.
Customer lifetime value is greater for companies who have loyal customers as compared to customers who are one time only. They add less value to the company as customers are also a source of promotion for the company.
Answer:
1. Damaged or obsolete goods are not counted in inventory if they cannot be sold.
2. If these can be sold… Cost should be reduced to Net Realizable Value
Explanation:
The law relating to the valuation of inventory is that ''inventory should be valued at lower of 'Cost' and 'Net Realizable Value'.
Therefore in the case of damaged or obsolete goods, they have to be eliminated from inventory, otherwise it will lead to overvaluation.
However in the case where these can be sold, They have to be valued at lower of 'cost' or 'salable value', implying that 'Cost' should be reduced to 'Net Realizable Value'
