Answer:
D. All of the above
Explanation:
Stockholder equity is also known as shareholders' equity. The shareholder's equity is composed of their capital contribution plus the retained earnings. In the balance sheet, the value of shareholder equity equals assets minus liabilities.
Stockholder equity is the amount that shareholders will receive if the assets of a company are to be liquidated after liabilities have been settled. It is the shareholder interest in the company.
Answer:
Anne exhibits high level of product involvement.
Explanation:
Product involvement is the level of consumers interest in the product and the associated relationship of the consumer with the product.
As it is evident from the question that Anne is well informed about the deals and has interest in knowing about the product before buying it. This indicates the high level of product involvement.
Explanation:
The journal entries are as follows
a.
Merchandise Inventory A/c $254,500
To Accounts payable A/c $254,500
(Being merchandise purchased on credit)
b.
Account payable Dr $30,000
To Merchandise inventory $30,000
(Being the merchandise returned is recorded)
c.
Account payable Dr $224,500 ($254,500 - $30,000)
To Cash $224,500
(Being the payment of the invoice is recorded)
Answer:
A. The total cost of the equipment.
Explanation:
Even if Jambon has not used the equipment in 2005 because it can only be used for the product that is to be developed in five years, Jambon still had to pay for the full cost of the equipment.
Because the equipment is laying idle, it is not depreciating. Therefore, the expense that Jambon is not incurring, is the depreciation expense associated with this equipment. This depreciation expense will only be seen in five years, when the product it was bought for is finally completed.
Answer: Understatement, $30,900
Explanation:
There will be an UNDERSTATEMENT of McGinnis' net income for the most recent fiscal year of $30,900.
The Understatement arises because as of year end which is June 30th, McGinnis were not paid for their services that cost $40,900 and instead will only be paid on the 8th of the next month so it was not accounted for in the net income.
The reason the net income understatement is $30,900 and not $40,900 is because McGinnis will still have to account for the payment to it's employees. If in a five day week they earn $12,500, that would mean that they earn $2,500 a day (12,500/5). Seeing as June ended on a Thursday, that is a 4 day week which means $2,500*4= $10,000.
That $10,000 will reduce the net income by that amount.
The net effect is a $30,900 UNDERSTATEMENT.
