If the terms of a business exchange are 2/10 net 30, this means that the transaction
A. involves a quantity discount if paid in 30 days.
B. involves a transfer discount.
C. offers a discount if the buyer lives within a ten-mile radius.
D. price does not include the cost of freight.
E. involves a cash discount if paid within ten days.
Answer: E
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Distributions from a retirement plan are not subject to a 10% additional tax in each of the following instances except when
A. The distribution is used to pay for medical expenses above the 7.5% AGI threshold. B. The distribution is made to pay an IRS tax levy on the plan. C. The distribution is paid to an employee to be used to pay health insurance premiums, which are not a portion of the taxpayers medical expenses above the 7.5% AGI threshold. D. The distribution is made to an employee or retiree on or after age 59½.
Which of the following accounts is not affected when an account receivable written off as uncollectible is unexpectedly collected?
a. Cash b. Accounts Receivable c. Bad Debt Expense d. Allowance for Bad Debts
Regarding the contribution-margin approach to marketing cost analysis, which of the following statements is true?
A. This approach may suggest a different action than the full-cost approach. B. This approach stresses the need for evaluating fixed costs. C. The total net profit obtained with this approach is different from that obtained using the full-cost approach. D. It is concerned with the amount contributed by a product or customer toward covering variable costs-after fixed costs have been covered. E. All these statements are true.
A cinema’s automated booking service is primarily part of which of the marketing mix elements?
a. product b. peripheral product c. price d. process e. physical evidence