Answer:
Profit and loss are directly linked to the amount of money the company is spending to run its business -- its operating expenses. So changes in operating expenses naturally affect owner's equity.
The correct question should be:
Companies facing the challenge of setting prices for the first time can choose between two board strategies; marketing-penetration pricing and _______ pricing.
Answer: Market Skimming pricing.
Explanation:
A company with a product new to the market can either choose to use the market penetration pricing or the market skimming pricing.
The market penetration pricing works best in a market with a lot of competition. The penetration pricing is a kind of pricing a company uses where the price of it's Products are set to be very low to attract price-sensitive consumers and still make profit.
The market skimming pricing on the other hand is a price setting method where a high entry price is set for a new product and then subsequently reduced with increase in market competition.
<span>Cash equivalents, the investments securities that are for short-term investing, and they have high credit quality and are highly liquid. Cash equivalents, also known as "cash and equivalents," are one of the three main asset classes, along with stocks and bonds. Cash equivalents also serve as one of the most important health indicators of a company's financial system.</span>
Answer and Explanation:
As we know that
The assets, expenses contains debit balance while the liabilities, revenues and stockholder equity contains credit balance
So based on this, the classifications are as follows
Particulars Type of account Normal balance Debit or credit Reason
a. Land Asset debit debit resources on the owners hand
b. Cash Asset debit debit resources on the owners hand
c. Legal Expense = expense debit debit consumption of cost
d. Accounts Receivable Asset debit debit resources on the owners hand
e. Dividends = Equity debit debit distribution made to owners
g. Notes Payable = Liability credit credit obligation made to creditors
h. Common Stock = Equity credit credit investment done by the owners
