Answer:
Purchase discounts is a contra revenue account. Revenue accounts carry a natural credit balance; purchase discounts has a debit balance as a contra account. On the income statement, purchase discounts goes just below the sales revenue account.
Answer:
There is a lack of user control over publicity.
Explanation:
Publicity is the degree of awareness of a product, company or service. It is the movent of information from the source to the general public.
One of the weakness of publicity is the lack of control the user or source has over it. Once an information is given to the public they form a perception and spread it in a way that the original source cannot control.
The lack of control a user has over publicity can have adverse effects, for example when negative publicity is circulating in the market a company is operating, it can lead to loss of revenue.
Answer: E) price-earnings ratio will be 14.26 ex-dividend.
Explanation:
Stock prices generally decrease in price by the price of the dividend on ex-dividend date.
This means that this stock will reduce to:
= 31.17 - 1.09
= $30.08
Price to Earnings ratio = Stock price/ Earnings per share
= 30.08/2.11
= $14.26
<em>Option E is correct. </em>
Answer: 9.20
Explanation:
In finance there is a rule for calculating this called 'The Rule of 70'.
With The Rule of 70, you are able to calculate the amount of time it will take an investment to double if you divide 70 by the growth rate of the investment.
In this scenario, the investment is your salary and the growth rate is 7.61% pee year.
The amount of time it will take to double is therefore,
= 70 / 7.61
= 9.19842312746
= 9.20 years.
It will take 9.20 years to double.
