Answer:
Part (1) November 1
The amount paid is the rental advances and must be recorded as advances which falls under the current asset category:
Dr Rental Advances $90,000
Cr Bank account $90,000
Part (2) December 31
On this date, some of the rental advances paid would be realized as expenses from the period November 1, 20X1 to December 31, 20X2.
This time duration constitutes to 2 months and the rental advance made on November were for five months. Out of these 5 months, 2 months share must be recognized as expense which is
The relevant entry would be:
Dr Rental Expenses $36,000
Cr Rental Advances $36,000
Answer:
The planning function of management includes establishing goals and standards, developing rules and procedures, and developing plans and forecasting
Explanation:
Planning is the function of management that involves setting objectives and determining a course of action for achieving those objectives.
Answer:
The answer is C.
Explanation:
Gross Domestic Product is the total market value of all final goods and services produced within a country during a given period of time. It is usually a year.
In calculating, GDP, we have expenditure approach, income approach and value-added approach.
In this question, the expenditure approach will be used to explain the answer to this question.
To calculate GDP using expenditure approach, the formula is:
C + I + G + (X-M)
where C is the consumers' spending
I is the investment spending
G is government spending
X is the exports
M is the imports.
The correct answer is C. firms purchases of inventories is part of investment spending. Firms can purchase raw materials(inventory) and process it into finished goods(inventory). The change in inventory(difference between the closing inventory and opening inventory) is part of the calculation of investment spending.
Households buying inventories(finished goods) is part of consumers' spending and not investment spending.
Answer:
The answer is: Cultural environment
Explanation:
Cultural environment is the set of values, behaviors, attitudes, customs and aspirations of people.
They are continuously changing and evolving, for instance 100 years ago gays weren´t allowed to marry, in many places being gay was outlawed. All businesses should change their marketing strategies to reflect cultural changes. Imagine if the TV ads from the 1980s were still running today, many would be considered scandalous, misogynistic or sexist.
Answer:
a. Wholesale division.
Explanation:
The formula to compute for return on investment is shown below:
Return on investment = Operating Income ÷ Operating Assets
For Retail Division, it would be
= $2,500,000 ÷ $16,000,0000
= 15.625%
For Wholesale Division, it would be
= $6,000,000 ÷ $36,000,0000
= 16.67%
Based on the calculation, the wholesale division perform better
