The correct answer is letter C. Pre-Sales
Pre-Sales is carried out before a producer managed to acquire customers, sometimes even before the products are being launch.
Usually customers get a significant amount of discount if they bought the product through pre-sales process, but they have to wait a little bit long before they got the products
Answer:
a. When must Janine recognize the income from the $17,360 advance payment for services if she uses the cash method of accounting?
Cash method of accounting recognizes revenues and expenses when they are received or paid for.
b. When must Janine recognize the income from the $17,360 advance payment for services if she uses the accrual method of accounting?
c. Suppose that instead of services, Janine received the payment for a security system (inventory) that she will deliver and install in year 2. When would Janine recognize the income from the advance payment for inventory sale if she uses the accrual method of accounting and she uses the deferral method for reporting income from advance payments? For financial accounting purposes, she reports the income when the inventory is delivered.
She will recognize revenue only after the merchandise is delivered.
d. Suppose that instead of services, Janine received the payment for the delivery of inventory to be delivered next year. When would Janine recognize the income from the advance payment for sale of goods if she uses the accrual method of accounting and she uses the full-inclusion method for advance payments?
Under this system, advanced payments are considered revenue on the year that they were received.
Answer:
Direct ownership provides a firm with equity ownership rights and management control rights.
Explanation:
Direct Ownership refers to the ownership of an equity interest in an enterprise; such equity interest includes : the right to take part in the voting rights in that enterprise; the right to receive unburdened economic interest (such as dividends) entitled to the shareholders of that enterprise; and Broad-based BEE schemes, employee share option schemes (ESOPs) and other employee share schemes, where the beneficiaries have the the capacity to elect and remove trustees and also have the absolute right to receive economic benefits .
Thus, Direct ownership provides a firm with equity ownership rights and management control rights.
Competition has an impact on prices of items being sold such that when competition is high, prices can get lower. This is because you want to keep up with other players and present your items as the affordable kind. when competitiion is low, prices are higher because your demand is high
Answer:
The marginal utility of the fourth plate is zero or below zero
Explanation:
The reason is that the law of diminishing marginal utility says that the marginal utility of a product declines upon continuous consumption of that item. This means that the utility before the consumption of first buffet was high and when the second buffet was consumed by the same person the utility was further reduced and so on. This means that the utility must be positive which if is higher enough then the customer is will to pay and eat the buffet again. If it is zero or below zero the customer is not willing to pay for the buffet. This is the reason the person doesn't ordered the item again.
You can not eat the same buffet for all the 365 days. This means the taste of a tasty food fades away after some time or I would say that the utility is gone. Same is the case when you will keep using cellphone for a period and then sell it or dispose it because the item doesn't entertains you or in other words the utility has significantly fallen and is almost zero or below zero.
