On January 1, 2016, the Keller Co. issued $140,000 of 20-year 8% bonds for $172,000. Interest was payable annually. The effective yield was 6%. The effective interest method was used to amortize the premium. What amount of premium would be amortized for the year ended December 31, 2016?
A. $827.20
B. $1,804.80
C. $880.00
D. $453.20
Answer: C
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Which of the following statements is true of customer needs?
A) Satisfying customer needs is the first step in successful market segmentation. B) All potential customers have the same needs. C) Solving customer problems requires knowing the identity of target customers. D) A business with a strong market orientation rarely divides its served market into customer segments. E) The factors influencing the needs of both consumers and businesses are the same.
Which of the following statement regarding organizational buying is most likely to be incorrect?
A. The buying process involves many individuals, multiple goals, and potentially conflicting decision criteria B. Establishing the decision criteria is an important step in organizational buying process C. An organizational buying situation begins when the firm perceives a business problem D. Organizational buyers almost always make very quick decisions E. Organizational buyers tend to focus on very rational goals such as reducing expenses or increasing sales
Walnut has forecast sales for the next three months as follows: July 4,000 units, August 6,000 units, September 7,500 units. Walnut's policy is to have an ending inventory of 40% of the next month's sales needs on hand. July 1 inventory is projected to be 1,500 units. Selling and administrative costs are budgeted to be $15,000 per month plus $5 per unit sold. What are budgeted selling and administrative expenses for July?
A. $30,500 B. $39,500 C. $35,000 D. $24,500
The straight-line depreciation method and the double-declining-balance depreciation method:
A. Produce the same book value each year. B. Produce the same total depreciation over an asset's useful life. C. Produce the same depreciation expense each year. D. Are the only acceptable methods of depreciation for financial reporting. E. Are acceptable for tax purposes only.