Answer:
Huffman Corporation
Income Statement for the year end December 31, xxxx
Service revenue $13,900
Less: Expenses
Salaries expense $3,100
Advertising expense <u>$700 </u>
Total Expenses <u>($3,800)</u>
Net Income <u>$10,100</u>
Explanation:
Following account are the balance sheet accounts, so these are not used in the preparation of income statement.
Retained earnings 3,700
Cash $ 4,200
Equipment 10,700
Common stock 7,900
Accounts payable 2,250
Answer:
The correct answer is letter "A": the loyalty loop.
Explanation:
The loyalty loop describes a process of retaining customers instead of attracting new consumers. Before the purchase takes place, the loyalty loop summarizes the purchasing process has three steps: <em>enjoy, consider, </em>and <em>evaluate</em>. After the purchase, the process involves three steps: <em>enjoy, advocate, </em>and <em>bond</em>. Both processes end up in a buy but the second process ensures the customer develops a <em>commitment </em>with the brand and is unlikely to look for competitors' products.
Answer:
The answer is c. It is recognized as authoritative by the United States Securities and Exchange Commission and the American Institute of Certified Public Accountants.
Explanation:
IASB and it's standards are not accepted nor used in the United States of America as they have a seperate body and a seperate set of standards that are used in accounting and financial reporting and presentation.
These are known as Generally Accepted Accounting Practices or US GAAP which are issued by the Financial Accounting Standards Board (FASB) of USA.
Due to the error in the recording of correct amount of inventory the ,at the end of Madison river supply balance sheet , the inventory , current assets, total assets and shareholders equity would be understated by $10,400.
Now due to the error in recording correct amount of inventory , in the balance sheet it will be shown as understated by $10,400 ( $555,400 - $5454,000 ) , now because of this the current assets would become understated by the same amount as inventory comes under the current assets.
Since current assets are understated , the total assets of the company would also be understated and so do shareholders equity as the net income has decreased because of the increase in cost of goods sold.