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ivanzaharov [21]
3 years ago
5

Colin McKinney, director of marketing for Greenwald Industrial Products, complains to his advertising director that the continui

ng slump in orders has apparently been perpetuated by the firm's failure to have the necessary advertising expenditures. Based on this information, Greenwald is most likely using the ____ approach to determine its advertising expenditures.
Business
1 answer:
sladkih [1.3K]3 years ago
6 0

Answer:

Percent of sales.

Explanation:

Percentage of sales approach leads to a peculiar selection. It increases advertising expenditures when business is good, and reduces them when sales are poor.

There are two steps  to do the budgeting:

Step 1: past advertising dollars/past sales = % of sales.

Step 2: % of sales X next year’s sales forecast = new advertising budget.

In most cases, it would be reasonable to expect that the reverse should be true if we are to accept the basic definitions of advertising and its sales values.

It is based on the erroneous assumption that "sales cause advertising" whereas the reality is just the opposite (advertising causes sales) .

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Which dimension of the general environment represents the demographic characteristics, norms, customs, and values of the populat
andreev551 [17]

The answer is sociocultural dimension. This dimension is being defined as somewhat the individual all access to progress, completion and even obstacles in which is one way of putting importance to it as this shows an individual’s way of encompassing factors that may go in his or her way.

7 0
3 years ago
At the beginning of 2021, Artichoke Academy reported a balance in common stock of $164,000 and a balance in retained earnings of
daser333 [38]

Answer:

                       Artichoke Academy

           Statement of Stockholders’ Equity

        For the Year Ended December 31, 2021

Beginning balance Common Stock                   $164,000

<u>Beginning balance retained earnings                $64,000</u>

Subtotal                                                              $228,000

Common Stock issued                                        $54,000

Earned net income                                              $44,000

<u>Distributed dividends                                          ($11,400)</u>

Ending balance Common Stock                      $218,000

<u>Ending balance retained earnings                    $96.600</u>

Total Stockholders' Equity December 31, 2021: $314,600

          Artichoke Academy

              Balance Sheet

For the Year Ended December 31, 2021

Assets:

Cash $54,000

Prepaid rent $31,000

Supplies $12,300

Land $270,000

Total assets: $367,300

Liabilities and stockholders' equity:

Accounts payable $13,600

Utilities payable $5,200

Salaries payable $4,900

Notes payable $29,000

Common stock $218,000

Retained earnings $96,600

Total liabilities and stockholders' equity: $367,300

7 0
3 years ago
Most businesses periodically remove bad accounts from their books true or false
Mashutka [201]

Answer: false

Most businesses remove or write off bad accounts but not periodically. By periodically means, it occurs at regular times which bad accounts are not. Accounts are considered bad accounts if they remained uncollectible after many months.

The entry to write off consists of 1) a credit to Accounts Receivable to remove it, and 2) a debit to Bad Debts Expense to report it.


5 0
3 years ago
Natalia has just finished her law degree, but as she starts her job search, she realizes that there many lawyers practicing in h
Len [333]
That means that she is going to have to work harder to be the best lawyer in the area, or move to an area with fewer lawyers
5 0
3 years ago
Entries for Uncollectible Receivables, using Allowance Method Journalize the following transactions in the accounts of Sedona In
seraphim [82]

Answer:

account receivables 18,900 debit

   sales revenues              18,900 credit

Cost of good sold    11,200 debit

    Inventory                      11,200 credit

Cash                                              8,000 debit

allowance for doubtful account 10,900 debit

     Account receivables                   18,900 credit

account receivables            10,900 debit

allowance for doubtful accounts   10,900 credit

cash          10,900 debit

  account receivables 10,900 credit

Explanation:

when we write-off we do not recognize an expense as we use the allowance method.

Now, when we recover the account we reverse the write-off method and then, record the collection as usual.

3 0
3 years ago
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