A person who is the exclusive owner of a business, entitled to keep all profits after tax has been paid but liable for all losses ; a sole trader.
Answer:
TRUE
Explanation:
This is known as historical cost, a common term in generally accepted accounting principles (GAAP). It's the original cost recorded in the balance sheet when an asset acquisition is recorded. It takes into consideration all of the items that can be attributed to its purchase and putting the asset to use. These items include the purchase price and such factors as commissions, transportation, appraisals, warranties, installation, and testing. For example, if a company buy a computer system, the original cost can include delivery charges, sales taxes, and setup fees.
Answer:
Table is completed below.
Explanation:
A price ceiling (price floor) is the maximum (minimum) price that can be charged in the market, and is imposed lower than (higher) than free market equilibrium price in order to be effective and binding. Therefore, the given statements can be labelled as below:
(1) Government prohibits gas stations from selling for more than $3.20 - Price ceiling, Not binding
(2) Government instituted legal minimum price of $2.80 - Price floor, Not binding
(3) Due to new regulations, gas stations cannot hire more workers - Price ceiling, Binding
Answer:
The Journal entry is as follows:
Bad Debt Expense A/c Dr. $15,218
To allowance for doubtful accounts $15,218
(To record the bad debt expense in 2017)
Working notes:
Bad Debt Expense in 2017:
= (Sales revenue - allowances) × 2%
= ($801,000 - $40,100) × 2%
= $760,900 × 0.02
= $15,218
Answer:
High-involvement and low-involvement
Explanation:
High-involvement products refers to those products represents the consumer’s personality, status,taste and justifying fashion. Low-involvement products on the other hand refers to products where the customer displays more mundane purchase decisions.