Under the five-step revenue recognition model, a contract can be written, verbal, or implied.
Answer the following statement true (T) or false (F)
True
A contract does not require legal paperwork, or any paperwork at all. Starbucks establishes a contract when it agrees to sell you a Frappuccino.
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16-year-old Frank bought a video game console from John for $150. Frank is a minor, while John is a competent adult. A month later, the console started malfunctioning on its own. Frank returned the console to John
If Frank disaffirms his contract with John for buying the console, which of the following will be considered true? A) John is not bound by the contract any more as the exchange has been completed. B) Frank can reclaim full refund on the amount he paid. C) Frank can only ask for full refund once he has reached the age of majority. D) Frank is legally obligated to fix the console before returning it to John.
Which of the following is a disadvantage of a general partnership?
A) The control of a partnership is skewed in favor of the partner who invests most capital. B) Partnerships do not have perpetual existence. C) Both a partnership and its individual partners are taxed separately. D) The partnership agreement does not allow partners to leave the business.
A general ______ is a gift of a specific amount of money. This gift of money istaken from the assets of the general estate
Fill in the blanks with correct word
Holstein Computing manufactures an inexpensive audio card (Audio Max) for assembly into several models of its microcomputers. The annual demand for this part is 100,000 units
The annual inventory carrying cost is $5 per unit and the cost of preparing an order and making production setup for the order is $750. The company operates 250 days per year. The machine used to manufacture this part has a production rate of 2000 units per day. (a) Calculate the optimum lot size. (b) How many lots are produced in a year? (c) What is the average inventory for Audio Max? (d) What is the annual holding and setup cost for Audio Max?