Answer:
The answer is D.
Explanation:
To increase asset and expense, you debit while credit decreases it.
To increase, liabity, revenue(income), equity, you credit while debit decreases it.
An insurance that has been prepaid is an asset because the benefit has not been fully utilised.
Samson and Sons has paid for an insurance that will expire December at the beginning of July.
$1,200 for 6 months.
Samson and Sons needs to recognize this as the service is being enjoyed monthly.
Therefore, insurance expense every month will increase by $1,200/6
$200
Remember that expense increase by debit and asset(Prepaid Insurance) decrease by credit.
So we have:
Debit insurance expense $200; Credit prepaid insurance $200
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Answer:
1,000 shares
Explanation:
The 318 attribution rule states that stock owned directly or indirectly by a partnership is considered to be owned by any partner that owns 5% or more in the business.
This is relevant to family owned businesses and is a way to mark out principal owners of a business in order to avoid tax evasion and fraud.
In this scenario John directly owns 700 of the outstanding shares. But according to the 318 attribution rule, since he he is a 50% partner he owns half of the outstanding 2,000 shares. That is 1,000 shares.
Answer:
Quality control
Explanation:
Six Sigma is a quality business management strategy which helps business organizations to improve the quality of processes, products and services by discovering and eliminating defects, variations or errors. It is a strategic business concept that was developed in 1986 by Motorola.
Under the six sigma approach, any process that doesn't provide customer satisfaction or causes challenges in an organisation's process should be eliminated from the system in order to produce quality products and services. It allows only 3.4 defective features for every million opportunities and as such expects processes to be defect free 99.99966 percent of the time.
Generally, there are two (2) main methods of achieving the six sigma approach;
1. DMAIC: define, measure, analyze, improve and control.
2. DMADV: define, measure, analyze, design and verify.
Hence, a pre-concert rehearsal is an example of quality control because the participants or team members are made to practice their routines so as to master them and prevent mistakes on the day of the concert. Thus, a pre-concert is aimed at getting the best out of a team in order to deliver a quality performance to the audience.
