Answer: initially Sam gross profit would drop. But overtime when he starts gaining customers in his new branch added to the already existing customers in his old branch there would a very large gross profit increase.
Explanation: Gross profit is the percentage of revenue a company retains after accounting for cost of goods/services.
In this case payment of staffs in both the old and new branches would be accounted for, with the new branch still very much dependent on the old branch for payment of staff until it can get its own customers, only then would the new branch be able to be self reliant and also make profit.
The note may lack the essential requisites of being a negotiable instrument, that is why it is dishonored. And also if the consent of on of the parties is not clear or they have no meeting of minds when executing such promissory note then it can be dishonored because of its substantial insufficiency of the reason to give its consent.
Answer:
The correct option is B,allocates bond interest expense over the bond's life using a constant interest rate.
Explanation:
Assuming a bond was issued for $20,000,000 with stated interest rate(coupon interest rate) of 5% and yield to maturity of 7%,in calculating the bond interest expense,we simply apply the yield to maturity of 7% to the bond outstanding balance in each year.
From the above, it is clear that the percentage applied to bond outstanding balance over relevant years remains the same,hence option B is absolutely correct
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Answer and Explanation:
The matching is as follows:
1. Cash receipts journal - since cash is received
2. General journal - since the items is returned
3. Purchase journal - since purchase is done
4. Purchase journal - since purchase is done
5. Cash disbursement journal - since cash is paid
6. Cash disbursement journal - since cash is paid
7. Purchase journal - since purchase is done
8. General journal - since expenses are recorded
9. General journal - since the items is returned
10. Cash receipts journal - since cash is received
