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3 years ago

Stock may be described as:_________

Business

1 answer:

nydimaria [60]3 years ago

5 0

Answer:

a. an ownership interest in the corporation.

Explanation:

Stock refers to the stake of the owners of a corporation in the company.

It is sometimes referred to as shares or owner's equity and the owners of stock are called shareholders.

Stock therefore may be described as an ownership interest in the corporation represented as equity in the financial statement.

Option a is right.

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The premium on a three-year insurance policy expiring on December 31, 20x11, was paid in total on January 1, 20x9. The original

bezimeni [28]

Answer:

b. The same as it would have been if the original payment had been debited initially to an expense account

Explanation:

We can use an example to explain this:

original journal entry to record a 3 year insurance policy on January 1 is:

Dr Prepaid insurance 3,600

Cr Cash 3,600

Adjusting entry on December 31

Dr Insurance expense 1,200

Cr Prepaid insurance 1,200

balance of prepaid insurance = $3,600 - $1,200 = $2,400

If instead of recording prepaid insurance on January 1, you recorded insurance expense:

Dr Insurance expense 3,600

Cr Cash 3,600

Adjusting entry on December 31

Dr Prepaid insurance 2,400

Cr Insurance expense 2,400

balance of prepaid insurance = $2,400

5 0

3 years ago

A car dealer advertises a rock-bottom price for a sports utility vehicle that usually goes for $1,000 or more. When you get to t

maria [59]

Answer:

b. bait pricing

Explanation:

Bait pricing strategy is one that is aimed at attracting customers by presenting a price that is lower than the actual value of a product. Usually the product is limited in quantity and when buyers come in they are convinced to buy something else.

This is considered an illegal means of marketing.

I'm the given instance when the customer got to the dealership the salesperson can't find that particular car on the lot, saying maybe it was sold this morning before he got in. The salesperson offers a higher-priced car.

This is bait pricing strategy.

3 0

3 years ago

Your firm manufactures motorcycles for the consumer market. You purchase raw materials to build the motorcycles from a variety

Paha777 [63]

Answer:

The correct answer is letter "E": Derived demand.

Explanation:

Derived demand implies the quantity requested to manufacture a good is directly related to the supply requested from the market. If the demand for the good increases, it means the quantity of the materials needed to manufacture that good will increase as well.

6 0

3 years ago

The model commonly used by large organizations places the information security department within the __________ department.\

victus00 [196]

Information technology

7 0

3 years ago

D’Lite Dry Cleaners is owned and operated by Joel Palk. A building and equipment are currently being rented, pending expansion t

lisov135 [29]

Answer:

1) equity = assets - liabilities

equity = $45,000 + $93,000 + $7,000 + $75,000 - $40,000 = $180,000

2) Since there is not enough room here, I used an excel spreadsheet to prepare the accounting equation.

3) D’Lite Dry Cleaners

Income Statement

For the month ended July 31, 202x

Revenues $116,875

Expenses:

Dry cleaning expense $29,500
Rent expense $6,000
Wages expense $7,500
Truck expense $2,500
Supplies expense $3,600
Utilities expense $1,300
Miscellaneous expense $2,700 ($53,100)

Net income $63,775

D’Lite Dry Cleaners

Balance Sheet

For the month ended July 31, 202x

Assets:

Cash $95,325

Accounts receivable $89,750

Supplies $5,900

Land $125,000

Total assets $315,975

Liabilities:

Accounts payable $49,200

Equity:

Capital $266,775

Total liabilities and equity $315,975

D’Lite Dry Cleaners

Statement of Owner’s Equity

For the month ended July 31, 202x

Palk, Joel, capital, beginning balance $180,000

Additional capital raised $35,000

net income $63,775

subtotal $278,775

drawings ($12,000)

Palk, Joel, capital, ending balance $266,775

Download pdf

3 0

3 years ago