Answer:
Sticker price is the published tuition and fees whereas net price is what the student pays after financial aid (much lower than sticker price).
Hope this helped! :)
Answer:
Taking his RMD in form of shares in a depressed market is a good investment decision. As the price will bound back and he will make more money.
Explanation:
When a traditional IRA holder gets to the age of 72 years he is entitled to required minimum distribution payments. This is not obtainable with other IRA plans.
RMD can be taken as cash or as shares. There is not tax difference between the two options.
Normally cash is better since it is easier to get access to and the beneficiary gets the exact dollar amount.
However when there is a depressed stock market, taking RMD in shares is a better option. Shares are bought and sold when prices appreciate.
This is a better option than selling shares at the low market price.
Answer:
a. The effective price received by sellers is $0.40 per bottle less than it was before the tax.
Explanation:
When government imposes tax on a product, a seller's margin on such a product falls which the seller tries to recover from the buyer by raising the price of the product.
In the given case, $1 is tax payable to government out of which the seller recovers $0.60 from the buyer via increased price. So, the remaining $0.4 tax is being paid by the seller out of his own pocket.
Effective price received refers to net amount received by the seller after deducting expenses and taxes. So, in the given case, the seller now receives $0.4 less per bottle than the receipts before such tax was imposed.
Answer:
C. Finished Goods Inventory account is credited.
Explanation:
In a perpetual system of inventory; which can be defined as a method of financial accounting, that involves the updating informations about an inventory on a continuous basis (in real-time) as the sales or purchases are being made by the customers, through the use of enterprise management software applications and a digitized point-of-sale equipment.
Under a perpetual system of inventory, updates of the journal entry for cost of goods sold or received would include debiting accounts receivable and crediting sales immediately as it is being made and Finished Goods Inventory account is also credited. The advantage of the perpetual system of inventory over the periodic system of inventory is that, it ensures the inventory account balance is always accurate provided there are no spoilage, theft etc.
Hence, when completed units are sold, Finished Goods Inventory account is credited.
