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Slav-nsk [51]
2 years ago
10

On May 1, 2017, ABC Company signed a contract to provide 1 year of marketing research services to Anderson Company starting on M

ay 1. Anderson Company paid the full year's price of $12,000 in cash on May 1. Prepare the entry that Anderson Company should make on May 1" to record this event.
Business
1 answer:
Anna71 [15]2 years ago
6 0

Answer:

Debit          Cash Account                              $12,000

Credit         Unearned Revenues Account    $12,000

Being advance payment for marketing research services by Anderson

Explanation:

Revenue received before it is earned are reported as liability until it is earned, this is consistent with  accrual basis of accounting. when payment for service not yet performed or goods not yet delivered is received, such a payment must not recognized in the period of payment but in the period when that service is preformed or when the goods are delivered.  

The treatment for advance payment of income is a debit to cash or bank and a credit to unearned revenues account or income received in advance account.

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__________ is an arrangement whereby someone with a good idea for a business sells the rights to use the business name and sell
ira [324]

Answer:

Franchise

Explanation:

This is a business arrangement where the owner of a successful business gives the right (through special business and legal arrangement) to another, to run such business in a specified location using his brand name in accordance with agreed terms and conditions. Under this arrangement, technical support and training are always provided by the franchiser.

The franchisor charges the franchisee a fee for the right which in most cases is periodic. The franchise is renewable.

7 0
3 years ago
A firm has an equity multiplier of 1.57, an unlevered cost of equity of 14 percent, a levered cost of equity of 15.6 percent, an
Elanso [62]

Answer:

10.45%

Explanation:

Calculation to determine the cost of debt

B/S = 1.57 − 1

B/S = .57

.156 = .14 + .57(1 −.21)(.14 − RB)

.156 = .14 + .57(.79)(.14 − RB)

RB = .1045*100

RB= 10.45%

Therefore the cost of debt is 10.45%

6 0
3 years ago
If the United States Supreme Court decided a similar case, would that decision be binding on the Nebraska court? Explain. at lea
Stolb23 [73]

Answer:

A lot of information is missing, but the answer is the same whether we are told about a specific case or not. If the US Supreme Court decided on a similar case that is under trial in Nebraska, the Nebraska court must follow the decision and guidelines of the US Supreme Court.

The Supreme Court is the highest court in the US, and its decisions must be followed by all lower courts. If a lower court doesn't follow a Supreme Court decision on a similar case, then an appellate court would reverse the decision.

The Supreme Court does not create laws, but it decides on how they should be enforced.

8 0
3 years ago
Which phase of decision making finds or recognizes a problem?a) Intelligenceb) Designc) Choiced) Implementation
Mashcka [7]

Answer:

a) Intelligence

Explanation:

Intelligence phase is the first phase in decision making process. It basically attempts to first identify what problems do the organization faces. What are the relevant opportunities for the organisation.

Performing the basic SWOT analysis is the basic aim of this stage. Though it  is not the complete SWOT analysis. But it identifies the opportunities, the data is collected then, and then the possible problems and hindrance are identified.

6 0
3 years ago
A monopolistically competitive industry is characterized by a. many firms selling products that are similar but not identical. b
UNO [17]

Answer:

A monopolistically competitive industry is characterized by

a. many firms selling products that are similar but not identical.

Explanation:

A monopolistic competition is a form of imperfect competition with many firms operating in the industry.  For such an industry, the goods or services are differentiated, such that one firm's goods or services can easily be associated with the producer.  This is mostly achieved through branding and the use of trademarks.  Each firm, therefore, competes with many other competitors, but they limit their competition by differentiating their products so that consumers would have preference for one against the other, depending on their perceived value.

7 0
3 years ago
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