Answer: D. Product costs are expensed in the period the related product is sold
Explanation:
The statement that is true with regards to product cost is that product costs are expensed in the period the related product is sold.
It should be noted that the account for the cost of goods sold consist of product cost. In a situation whereby goods are not sold, the goods will be carried to the next period.
Answer:
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Explanation:
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Answer:
3) debit to Cash for $348.
Explanation:
The complete journal entries should be:
Dr Cash account 348
Cr Sales Revenue account 320
Cr Sales Taxes Payable account 28
Cash is an asset account and it increases, so it should be debited.
Sales revenue is a revenue account and it increases, so it should be credited.
Sales taxes payable is a liability and it increases, so it should be credited.
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Answer:
The maximum that one should be willing to pay for this stock today is $21.38
Explanation:
The constant dividend paying company is the one whose dividend growth remains zero or unchanged. The zero growth model of the DDM is used to calculate the price or value of stock today of such a stock. This kind of stock is just like a perpetuity as it pays a fixed amount after fixed intervals of time forever.
The formula for price of such a stock or zero growth model is:
Price = Dividend / r
Price = 3.1 / 0.145
Price = $21.379 rounded off to $21.38
