Explanation:
Control
Entrepreneurs naturally have long-term vision and find focus on quarterly profits frustrating
As an owner of a privately held company, you have complete authority over operational decisions and don’t have to worry about shareholder expectations and interference. Shareholders in public companies are often focused on current earnings and they can exert tremendous pressure to increase earnings in the short term in order to increase the value of their stock.
Right of Non-Disclosure
Privately held companies are not required to disclose details about their operations that could potentially benefit competitors. The SEC has stringent disclosure requirements for public companies, including the details of investor conferences, research analyst meetings and shareholder discussions.
Confidentiality
Information such as executive compensation, legal settlements and other sensitive information cannot be kept confidential in public companies. Compliance with these SEC disclosure regulations can expose information that you would prefer to keep confidential.
The United States is considered the world's premier free-market economy. Its economic output is greater than any other country that has a free market. 1 The U.S. free market depends on capitalism to thrive. The law of demand and supply sets prices and distributes goods and services.
Answer:
a) Journal entries to record the sale on January 2, 2020:
Debit Accounts Receivable with $407,000
Credit Sales Account with $368,500
Credit Deferred Revenue (Installation Fee) with $38,500
Being sales of goods and installation services.
b) Income Statement for 1st Quarter of 2020
Sales - $368,500
Installation Fee - $19,250
Total Income - $387,750
less cost of sales - $320,000
Net Income - $67,750
c) The revenue Shaw should recognize in relation to the sale to Ricard is $387,750 (goods and accrued installation fee). The installation fee to be recognized is for 3 months only.
Explanation:
The installation fee is for 6 months. Therefore, 3 months' worth of fee will be recognized in the income statement ending on March 31, 2020.
Answer:
A is the correct option.
Explanation:
The increase in the general price is known as inflation. This inflation occurs when people know that Inflation is going to occur and they start preparing for it. e.g In case of increased interest rates if the inflation is anticipated, the banks try to protect themselves by increasing the interest rates. There is also unanticipated inflation which occurs when people are unaware that inflation until the price level increases. In the case of unanticipated inflation, people are unprotected.
