Answer:
a. Universal agent
Explanation:
The universal agent is an employee that has been appointed by the employer to do particular task. It could be appointed via power of attorney through which he can perform all types of functions
Therefore as per the given situation since the employee can use the credit card of the employer for the business expense so this represent that the relationship is of universal agent
hence, the correct option is a.
Answer: Martha does not have a dominant strategy
Explanation:
A dominant strategy is one that a player can embark on and get the highest payoff regardless of the actions of their competitor.
In this scenario, there is no strategy that Martha can embark on that would provide the greatest payout regardless of Oleg's decision. If Martha advertises, Oleg makes the same amount advertising as well. If Martha does not advertise, Oleg would decide not to advertise as well and make the same amount.
Martha therefore has no dominant strategy as Oleg would make the same amount regardless of which decision is taken.
Answer:
C.a debit to Sales Returns and Allowances and a credit to Accounts Receivable.
Explanation:
The journal entry to record the returns of merchandise is shown below:
Sales return and allowance A/c Dr XXXXX
To Accounts receivable XXXXX
(Being sales return is recorded)
Basically we debited the sales returns and allowances and credited the account receivable so that the proper recording could be made.
Answer:
ADDITIONAL REVENUE & ADDITIONAL COST
Explanation:
If Korey has made the decision to bring on an extra hand to help run the store in the afternoons and the new employee will make $435 per month; then there are 2 changes that will happen to the monthly net income
1. Increased Revenue: Since the new employee will be bringing in additional revenue of $435, then the direct impact of that is an increment in the revenue line of the income statement
2. Increased Costs: Secondly, this change will affect Korey's monthly net income in the area of cost because he has to pay the extra hand some sort of monthly salaries which will have a reducing effect on profit.
question text <u>WITH </u>missing information:
After examining the various personal loan rates available to you, you find that you can borrow funds from a finance company at an APR of <em>12 percent compounded monthly</em> or from a bank at an APR of <em>13 percent compounded annually.</em> Which alternative is more attractive?
If you borrow $100 from a finance company at an APR of 9% percent compounded for year, how much do you need to payoff the loan?
Answer:
The finance company option is better as we are taking the loan we want the lower rate possible.
We need $109 to payoff the loan of $100 at 9% annualy after a whole year.
Explanation:
We solve for the effective rate of 12% compounded monthly
= 1.12682503 = 0.126825 = 12.6825%
As this rate is lower than 13% this option is better
If we take 100 dollars after a year we have to pay:
$100 x (1 + r) = 100 x (1 + 0.09) = 100 x 1.09 = $109
