Answer: 1. D) Assets are understated
2. D) Car dealers
Explanation:
1. The shipping costs to bring Inventory into a business are known as Carriage Inwards. This amount is to be debited with the Inventory as it is considered to be part of the cost of acquiring the inventory. By not putting this cost with the inventory, ABC is undervaluing the inventory account which is an Asset account. The Assets are therefore understated.
2. The Specific Identification Method of inventory valuation is based on each individual unit purchased or sold. It does not group items and tracks each item from the moment it is purchased to the moment it is sold so the cost of the specific inventory is known. This method is used more often by businesses that deal with easily identifiable items such as Jewellers and Car dealers because each car is big enough to be tracked individually.
Answer:
A. a computer programmer who starts her own software Company
Explanation:
Entrepreneurship is the process through which new businesses are started. An entrepreneur is a person who takes risks by committing their time and resources to start a business.
The computer programmer is the entrepreneur in this case. She is starting a new software business. Other than her computer skills, she will need to be creative and innovate to develop products that will appeal to customers. She will take all risks of her new business but also stand to enjoy its success.
Answer:
The statement is true.
Explanation:
Investment expenditure refers to the expenses incurred on account of creating capital assets.
If a good is produced but is left unsold or not used in the production process, then, they result in increased inventory, which is considered as an investment by the firm.
For the purpose of GDP accounting, unsold goods in inventory are treated as purchased by the firm from itself. As such, they form a part of investment expenditure in the accounting period.
Answer: The final stage is Post-Purchase Behavior
Explanation:
You may decide to purchase a warranty because that will be way cheaper than paying to get it repaired a lot of times
