<u>Answer: </u>Option A
<u>Explanation:</u>
Prospective approach is used for bring changes into accounts. In the LCNRV rule the accounting principle of lesser value of the stock is so that the amount sold can be mentioned as the net realizable value (NRV). Here the principle of using low cost of net realizable value is known as LCNRV. This cannot be changed using prospective approach.
Other changes such as the depreciation from straight line to double declining depreciation, LIFO from average costing for inventories and other change from double declining to straight line depreciation can be done with the prospective approach.
Answer:
D. local marketing
Explanation:
Local marketing also known as neighborhood marketing is a marketing strategy that targets customers and potential customers in their locality, it is a type of marketing technique that direct their product offerings and marketing efforts towards the residents of their local community. It helps in establishing the brand in the minds of the new customers and the repeat customers.
Local marketing can be done through sponsorship of events, advertisement, e.t.c.
Answer:
The correct answer is letter "B": Sell-off.
Explanation:
A sell-off is the rapid sale of an asset typically follow by its drastic decline in its value. For example, if ABC corporation releases a bad earning report many of its shareholders may decide to sell their shares. With many sellers and few buyers, ABC stock value will sharply fall.
Kraft Foods Inc., in November 2004, published the sell of its sugar confectionery enterprises because they had discontinued operations. They planned to restructure the organization realigning and lowering the structure cost and optimizing capacity utilization.
Answer:
$4,400
Explanation:
Calculation for the maximum possible gain, ignoring transactions cost
Using this formula
Maximum possible gain = Sale proceeds - Cost of purchasing the share
Let plug in the formula
Maximum possible gain = (100 shares *$44 per shares)- (100 shares *0) = 14000
Maximum possible gain=$4,400-0
Maximum possible gain=$4,400
Therefore the maximum possible gain, ignoring transactions cost will be $4,400