Answer: D
Explanation: Interest cost reflects the change in the APBO throughout the period which arise simply from a passage in time.
It is usually equal to the APBO at the start of the period times, the supposed discount rate which is used to regulate present value of future cash outflows currently expected or needed to satisfy the commitment or duty.
Answer:
D. Salaries and Wages Expense 530
Advertising Expense 910
Cash 1440
Explanation:
Salaries and wages expense, and advertising expense, are expenses, therefore, when they increase, they are debited.
Cash is an asset account, when it decreases, as in this case, it is debited.
The entry would be:
Account Debit Credit
Salaries and Wages Expense 530
Advertising expense 910
Cash 1440
Answer:
The correct answer is letter "A": demand curve to the right and make demand less elastic.
Explanation:
Investing in advertising has one goal: <em>increasing profits</em>. There are many ways of increasing the revenue of a company being the most common increasing the quantity demanded. However, increasing the quantity demanded -<em>moving the demand curve to the right</em>- implies bringing the prices down -<em>demand law</em>, but we do not know how the market will react.
Then, advertising should also help institutions marketing that will help them make their products less <em>elastic </em>or less prone to major changes in quantity demanded due to changes in price.
The preferred stock effect is not a notion that can be used to explain abnormally high excess stock returns.
<h3>What is the preferred stock?</h3>
The term "stock" refers to a company's ownership or equity. Common stock and preferred stock are the two forms of equity. Preferred investors are entitled to more dividends or asset distributions than common stockholders. The specifics of each preferred stock vary depending on the issuance.
When it comes to dividends, preferred stockholders have a preference over ordinary stockholders, which typically yield more than common shares and might be paid monthly or quarterly. These dividends can be fixed or determined by reference to a benchmark interest rate, such as the London Interbank Offered Rate.
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Answer:
Check the following explanation
Explanation:
a) Goods available for sale = Beginning Inventory + Net Purchases
13500 + 17500 = 31000
Cost of goods sold = Goods available for sale - Ending Inventory
31000 - 8100 = 22900
Gross Profit = Net Sales - Cost of goods sold
26500 - 22900 = 3600
b) Net Income for Krug Service Company = Revenues - Expenses
= 31000 - 10500
= 20500
Net Income for Kleiner Merchandising Company = Gross Profit (Computed Above) - Expenses
= 3600 - 2300
= 1300
