Ahi Corporation purchased merchandise on account from Yudder Inc on December 12, 2012. On December 13, 2012, Ahi returned damaged merchandise to Yudder and was granted an adjustment on its account. Ahi uses the periodic inventory system. What effect does the merchandise return have on Ahi's accounting equation?
A) Assets and equity decrease.
B) Assets and liabilities decrease.
C) Liabilities decrease and equity increases.
D) Liabilities and equity decrease.
B
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Mark goes to Tony's Lumber Yard to buy some lumber to build a new roof for his cabin. Mark tells Tony, the lumber yard owner, to provide him an exact type of wood that can resist the wood decay caused due to the damp environment around the cabin
Mark buys the lumber after Tony assures him that the wood is exactly what Mark is looking for. But then the dampness affects the wood and it caves in. Which of the following warranties has Tony explicitly breached by not providing Mark the lumber he needed? A) express warranty B) statement of opinion C) implied warranty of fitness for human consumption D) implied warranty of fitness for a particular purpose
In Hughes v. Oklahoma, Oklahoma law forbid the export of natural minnows, to help protect the state's natural resources. When this law was challenged, the Supreme Court held that the law was inconsistent with the basic principle that:
a. our legal unit is the Nation b. our economic unit is the State c. the State has ultimate authority d. the Nation has ultimate authority e. none of the other choices
Treaties or conventions between countries can ease litigation related to international commerce by:
a. allowing for proper notice of the suit to the foreign party b. allowing appropriate service of process c. providing methods for documentation certification d. providing procedures for taking evidence e. all of the other specific choices are correct
Basta Corporation has provided the following data concerning an investment project that it is considering: Initial investment$780,000 Working capital $94,000 Annual cash flow$268,000per yearSalvage value at the end of the project$26,000 Refer to Exhibit 12B-1 and Exhibit 12B-2, to determine the appropriate discount factor(s) using the tables provided.The working capital would be released for use elsewhere at the end of the project in 4 years. The company's discount rate is 8%. The net present value of the project is closest to:
A. $32,726 B. $126,726 C. $318,000 D. $101,816