Answer:
Explanation:
Purchase discount = $4000 * 2% = $80
Date Accounts title Debit Credit
Dec-15 Accounts Payable $4,000
Purchase Discounts $80
Cash $3,920
(To record payment within discount term of 10 days)
Answer: Unearned warranty revenue
Explanation:
Unearned warranty revenue is usually shown as an unearned revenues in the accrued liabilities during the preparation of the balance sheets.
It should be noted that the unearned warranty revenue is a characteristic of both the sales approach for service-type warranties and the expense approach for assurance-type warranties.
Answer: True
Explanation: Cumulative preferred shares of a company carries some special rights as per law. The holders of such stock must be paid any current or prior period accrued dividends before any payment of dividend to common shareholders. The dividends of such shareholders is fixed in nature.
Also in the event of liquidation they will be preferred before any common stock holders.
Thus, the given statement is true.
Transportation costs
can make exporting an inappropriate strategy.
<span>If a product is bulky or heavy, because
of its weight or mass the transportation costs will obviously increase and make it more expensive, and
unless the product carries an extraordinary high value-to-weight ratio the
exporting strategy will be considered the least effective.</span>
