For details about the financial histories of companies, one could consult publications of Moody's and Standard & Poor's
Indicate whether the statement is true or false
True
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Common law systems are based on the concept of ______ or "stare decisis."
Fill in the blanks with correct word
The concept that an injured party may recover consequential damages only if the breaching party should have foreseen them was established in:
a. Bi-Economy Market, Inc. v. Harleysville Ins. Co. of New York. b. Putnam Construction & Realty Co. v. Byrd. c. Hadley v. Baxendale. d. Toscano v. Greene Music.
Financial analysis provides an accurate way to assess the relative strengths of firms and can be used as a complete guide to study companies.
Answer the following statement true (T) or false (F)
On July 1, Ferguson Company sold merchandise in the amount of $5,800 to Tracey Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Ferguson uses the perpetual inventory system and the gross method. On July 5, Tracey notifies Ferguson that some of the merchandise is defective. Ferguson agrees to a full refund for the items, and Tracey is allowed to keep the merchandise. The selling price of the merchandise is $500 and the cost of the merchandise is $350. The entry or entries that Ferguson must make on July 5 is:
A.
| Accounts receivable | 500 | |
| Sales returns and allowances | 500 | |
| Cost of goods sold | 350 | |
| Merchandise inventory | 350 |
B.
| Sales returns and allowances | 500 | |
| Accounts receivable | 500 | |
| Merchandise inventory | 350 | |
| Cost of goods sold | 350 |
C.
| Sales returns and allowances | 500 | |
| Accounts receivable | 500 |
D.
| Sales returns and allowances | 350 | |
| Accounts receivable | 350 |
E.
| Accounts receivable | 500 | |
| Sales returns and allowances | 500 |