A certificate or token that is represents a fixed quantity of a commodity is called a representative money. It is a piece of paper or a token that doesn't have a intrinsic value but can be a demand for commodity.
for example:
Gold
Tobacco.
Answer:
When any company wants to sale their product without prior knowledge of the market then it's a disaster.
First thing Jack can do is "Test Marketing". If any company has no knowledge of market then fastest way to know your market is test marketing. Jack must put his sweaters in small quantity for sale at different locations. Test marketing needs to be done for whole week. Jack needs to collect the feedback from its customers too. Feedback is the way jack can know the market. Without knowing the market and customers, it's really hard to market or sale your product. Feedback from test marketing activity will actually give him market knowledge and customer's feedback.
Answer:
$300,000 amount should be accrued as a liability
Explanation:
This is an example of a contingent liability.
A contingent liability can be described as a liability which its likely occurrence depends on the outcome of an uncertain future event.
In the accounts, the contingent liability will therefore be recorded if the contingency is probable and it is reasonably possible to estimate the amount of the liability.
In the quesion, it is stated the contingency is probable and that they estimate that the amount of the loss will be $300,000. Therefore, the proper accounting treatment for the contingency is "$300,000 amount should be accrued as a liability".
Answer:
All the answers are attached below. Thanks.
Explanation: