Answer:
When a company uses the straight line amortization of bond premiums, the total amount of interest expense will be equal to the expense calculated using the effective interest method.
The advantage of using the straight line amortization is that it is a much simpler method. Under this method, the bond's premium is amortized over the life of the bond.
Answer:
The correct answer is negative.
Explanation:
When dependent variable declines because of increase in the independent variable, it means that there is a negative or inverse relationship between the two variables. The variables here are negatively correlated.
Had the two variables changed in the same direction, it would indicate a positive or direct relationship between the two variables.
<span>With the boom of social media, the customer’s path to purchase has
significantly changed. Traditional, “above-the-line” advertising, specifically
done on TV, print or radio is not as effective as it was before when it comes
to convincing consumers to purchase products. More and more people would resort
to seeking advise and referrals from friends in their respective social
networks. Consumers are wiser now given that they know they have the power to get
real-time information and data simply by the act of crowdsourcing. Engaging
with friends from social media networks would give them access to more genuine
feedback or POV on certain products and services. What traditional advertising
lacks is a venue for consumers to get immediate answers to possible questions
they have on products being advertised. Consumers don’t appreciate information
shoved down their throats as they know that marketers have full control of the
messages being communicated in their ads. It’s too one-sided. There should be a
platform for dialogue which is provided by social media. This is where the
fundamental shift of power takes place as described by Mr. Safco. It’s all about engagement and two-way
communication as he puts it. </span>
Answer:
(a) $1,200
(b) $330
Explanation:
(a)
- The advance payment was issued in 2018, however the items throughout 2018 were not shipped.
- The products were distributed throughout 2019 as well as the transaction for accounting information requirements was announced throughout 2019.
Therefore, in 2019, $1200 would include gross revenue
(b)
<u>Service contract for 6 months will be:</u>
Drake would include gross income throughout 2019 of 
($)and gross income throughout 2020 of $120. In October year 2019, because a corporation offered a 6-month contract, total sales in 2019 represented just a 3-month service agreement.
<u>Service contract for 36 months will be:</u>
- Throughout 2019 gross sales, Drake would include
.The residual balance would not have been all conducted until the close including its tax year of collection since the contract became sold through 36 month. - The residual amount of
is thus used throughout gross sales for 2020.
Consequently,
⇒ Cumulative gross income used throughout 2019 = total earnings of 6 months service agreement + gross income of 36 months service agreement
⇒ 
⇒ 
($)
