Answer:
Owner's withdrawals:______.
a) decrease owner's equity.
Explanation:
The withdrawals made by the owner of an entity reduces his or her equity interest in the entity. Owner's withdrawals are transfers of cash from the business to its owner. They are not expenses of the business and do not appear in the income statement. Instead, withdrawals may occur when an organization is spinning off extra cash or when the owner has an immediate personal need for the funds. The forms of business organizations that allow for withdrawals by the owners are the partnership and the sole proprietorship.
Answer:
a) net income will increase
Explanation:
The business must record the Account Receivable (Debit – Asset increased) against de income for the Revenue (Credit – Equity increased). Then will record the loss for the Cost of Sold Goods (Debit – Equity decreased) against the exit of the sold goods (Credit – Asset – decreased). As the income (Revenue) will be larger than the loss (Cost of Sold Goods), the Net Income will be increased.
Answer:
C. to determine the amount and/or percentage increase or decrease.
Explanation:
Horizontal analysis is a method used in financial statement analysis to compare financial ratios, or line items, over a number of accounting periods.
Financial information can be compared with a benchmark.
By making this comparison, one can determine if financial information been compared have increased or deceased.
I hope my answer helps you
Answer:
7.98%
Explanation:
The Rate of Return (ROR) is the gain or loss of an investment over a period of time compared to the initial cost
Starting year 2, Annual O&M cost in year N = Annual O&M cost in year (N - 1) + $750
Annual net benefit = Annual revenue - Annual O&M cost
In year 10, Annual revenue ($) = 72,000 + 35,000 salvage value = 107,000
Rate of Return (ROR) of Annual net benefit is computed using Excel11 IRR function as follows.
Year (N) Revenue ($) Cost ($) NAB ($)
0 4,50,000 -4,50,000
1 72,000 4,500 67,500
2 72,000 5,250 66,750
3 72,000 6,000 66,000
4 72,000 6,750 65,250
5 72,000 7,500 64,500
6 72,000 8,250 63,750
7 72,000 9,000 63,000
8 72,000 9,750 62,250
9 72,000 10,500 61,500
10 1,07,000 11,250 95,750
ROR of NAB = 7.98%
Answer:
1. Test market
2. Buzz or Word of Mouth Marketing
Explanation:
1. Test market is made up of a particular group of people who are used in checking feasibility of a product before bringing it out to the larger or general market. They are used to check how the general market would perceive the product once release. It is used in measuring consumer's response to a new product before introducing it to the larger market.
2. Buzz marketing involves or rather refers to the situation whereby a satisfied consumer/customer passes along information pertaining to a particular product to another consumer/customer. It is a situation whereby a person recommends the use of a particular products to another customer. It involves using word of mouth marketing to works in one's favour.
