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2 years ago

Consider each of the transactions below. All of the expenditures were made in cash.

Business

1 answer:

love history [14]2 years ago

8 0

Answer:

of the expenditures were made in cash.

a. The Edison Company spent $12,000 during the year for experimental purposes in connection with the development of a new product.

b. In April, the Marshall Company lost a patent infringement suit and paid the plaintiff $7,500.

c. In March, the Cleanway Laundromat bought equipment. Cleanway paid $6,000 down and signed a noninterest-bearing note requiring the payment of $18,000 in nine months. The cash price for this equipment was $23,000.

d. On June 1, the Jamsen Corporation installed a sprinkler system throughout the building at a cost of $28,000.

e. The Mayer Company, plaintiff, paid $12,000 in legal fees in November, in connection with a successful infringement suit on its patent.

f. The Johnson Company traded its old equipment for new equipment. The new

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Define bank run in your own words.

lina2011 [118]

Answer:

A bank run occurs when a large number of customers of a bank or other financial institution withdraw their deposits simultaneously over concerns of the bank's solvency. As more people withdraw their funds, the probability of default increases, prompting more people to withdraw their deposits.

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2 years ago

Western Bank & Trust purchased land and a building for the lump sum of $3 million dollars. To get the maximum tax deduction,

leonid [27]

Answer:

Explanation:

Because land never depreciates, Western Bank & Trust wanted to distribute a higher percentage of the purchase price to the building, rather than the land. By allocating 90% of the purchase price to the building, rather than a more accurate 70%, Western Bank & Trust increases the depreciation amount of the building each year. For tax purposes, the IRS requires that the Modified Accelerated Cost Recovery System (MACRS) be used as the depreciation method used by companies. Under this method, the IRS specifies the useful life for a specific asset. MACRS also ignores residual value of an asset at the end of its useful life. By stating that the building was worth 90% of the total purchase price, Western Bank is attempting to increase its tax deduction from the IRS, because only the building depreciates, not the land. This improper allocation of the total purchase amount violates GAAP principles, which require that accounting information be “relevant and have faithful representation.” The information must be “complete, neutral, and free from error” (Nobles, Mattison, & Matsumura, 2014). For Western Bank to provide complete, neutral, and free from error information, it should record the transaction honestly: 70% to the building, 30% to the land. This dishonest representation is harmful to the federal government in that it is allowing Western Bank to take more money than what it is owed. If these kinds of situations happen on a large scale, it could have a huge impact on the economy in general. Source: Nobles, T., Mattison, B., & Matsumura, E. M. (2014). Horngren's Accounting, 10th Edition. Pearson Education, Inc. Student 2

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2 years ago

An example of the ___________ effect is when BMW gained in-depth information about visitors to a popular Chinese social media si

Bezzdna [24]

Answer:

information effect.

Explanation:

Based on the information provided within the question it can be said that the effect being illustrated in this scenario is known as the information effect. This term refers to when a company obtains confidential information that allows them to make specific decisions to drastically increase their position within the market. Such as BMW is doing by using the information to target the correct population segment within the market.

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3 years ago

Read 2 more answers

A firm is productively efficient when:__________.

inna [77]

Answer:

Its is A

Explanation:

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2 years ago

Which of the following options is NOT a unique feature of e-commerce technology? A. The consumer is a participant in the proces

Blababa [14]

Answer:

<u>A. The consumer is a participant in the process of delivering products or services.</u>

Explanation:

As a known fact the consumer is a part of the entire process and all of the e-commerce is surviving of the large consumer base and hence the delivery of the product to the home of the consumer is it a new or unique aspect of e-commerce.

Without the participation of the consumer, e-commerce has no competition in the marketplace while the rest are unique or global characteristics of the e-commerce industry.

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3 years ago