The allowance method is used by a firm
a. to estimate for uncollectibles when it knows that at the time of sale, it will experience some reduction in future cash flows and this amount can be estimated with reasonable precision in order to reduce reported earnings in the period of sale to the amount of the expected net cash collections.
b. when the customer has the right to return the product for a refund and the firm can estimate with reasonable precision the amount of returns at the time of sale.
c. when the customer has the right to repairs or replacement under warranty if the purchased product is defective, and the firm can estimate with reasonable precision the amount of warranty costs at the time of sale.
d. all of the above.
e. none of the above.
D
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A company issued 11%, 5-year bonds with a par value of $150,000. The market rate when the bonds were issued was 12%. The company received $144,481 cash for the bonds. Using the effective interest method, the amount of interest expense for the first semiannual interest period is:
A. $17,337.72. B. $9000.00. C. $16,500.00. D. $8668.86. E. $8250.00.
The poultry farmer has in mind the following levels for each of his metrics of interest: a plumage score greater than 75, fertilizer production greater than 80 ounces per week,
temperament less than 100 decibels, and an appetite less than 160 ounces of layer pellets per week. Use this portion of the sensitivity report to evaluate the following statements: Cell Name Final Value Reduced Cost Objective Coefficient Allowable Increase Allowable Decrease $B$1 Leghorn 32 0 5 1E+30 2.1875 $C$1 Cochin 0 -2 2 3 1E+30 $D$1 Buff Orpington 0 -3.5 4.5 3.5 1E+30 A) The noise level around the farm should be over 60 decibels. B) The fertilizer generated will be 160 ounces per week. C) Layer pellets will be consumed at the rate of 96 ounces per week. D) The plumage score will be less than 40.
A batch of business events is accurately entered into a business event data store, but the computer operator fails to use the data to update master data. This type of processing error would be classified as an operational error.
Answer the following statement true (T) or false (F)
List the common input, output, storage and communication devices.
What will be an ideal response?