Answer: a. a credit to Accounts Payable.
Explanation:
When paying off a note, cash will be used so cash will have to be credited to show that it is decreasing.
Interest expense will be debited by the interest accumulated on the loan because expenses are debited when they increase.
Notes Payable will be debited to show that the note has now been retired.
There is no credit for Accounts payable involved in this transaction.
Answer:
b) 1,250,000
Explanation:
1,000,000+ 250,000 = 1,250,000
Answer: Puresource Pharma would have to reduce it's cost
Explanation:
Horizontal integration could be defined as the merge between two or more companies that carry out similar functions or market in production.
Puresource Pharma would have to reduce it's cost of product and either sell below or same cost as their acquired company's product. This would help promote her market and would give a monopoly for them for the market for both of them.
