Answer:
a. By Differential Analysis
Accept Order or Reject Order
Per Unit: Accept Order Reject Order Differential effect on income
Revenue: $ 0 $7.20 $7.20
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The answer to the blank space is support arguments. Sarah is persuaded by the arguments presented in the advertisement to buy the latest type of fitness equipment.
Since she herself is a fitness enthusiast, she believes that she might be able to take full advantage of the product by incorporating it to her fitness routine. This is why she is choosing to buy the product as soon as possible, since her decision is supported by her habits and the advertisement.
The high premium pricing strategy is used.
A premium pricing approach entails pricing a product higher than comparable ones. This method is also known as skim pricing since it attempts to "skim the cream" off the top of the market.
Here the internet provider is providing high speed internet at lowest cost if the two year contract is taken, now the user gets used to that speed and now will not be satisfied with the low speed so he will take the offer even if it is provided at high price.
This strategy of pricing is called premium pricing strategy.
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Answer:
The original records (Option C) is the only option that gives evidence that the event has occurred. Lets assume you own a car, now how will you prove that you own the car. Of course you will show the ownership papers to tell relevant authority that you own this car. Likewise in the company, their is huge flow of data. The events occurring are recorded in the accounting system but their evidences are kept in the file. According to the International Standard on Auditing ISA 500, the evidence is must be reliable. This means the original records are always reliable because they are confirmations from the parties that are independent of the company's operations.
Answer:
The answer is D. Computation of deferred tax assets and liabilities based on temporary differences.
Explanation:
Financial income is the revenue minus total cost before deducting for tax. It is known as income before tax.
Taxable income is the amount on which tax is to be deducted from. Usually financial income will be used as the base figure for determining the tax payable.
Deferred tax liability is the tax payable i.e the amount of tax that will be carried to the next accounting year.
Deferred tax liability is the tax receivable. This arises as a result of over payment of tax in the current period which the tax authority will need to refund.
The temporary differences are the differences between the net book value (carrying amount) of a liability and an asset and its tax base(financial income) . The tax base is the financial income.
So the computation of tax asset and liability is based on temporary differences