The purpose of a cash discount is to
A. prevent competitors from obtaining shelf space.
B. encourage retailers to pay their bills promptly.
C. counteract the introduction of a new product by a competitor.
D. encourage purchasing items during periods of low demand.
E. reward retailers for making large quantity purchases.
Answer: B
You might also like to view...
Work Room Company purchased equipment for $45,000. Total depreciation of $36,000 was recorded. On January 1, 2019, Work Room exchanged the equipment for new equipment, paying $65,000 cash. The market value of the new equipment is $65,000. Prepare the journal entry to record this transaction. Assume the exchange had commercial substance. Omit explanation.
What will be an ideal response?
Empirical research that attempts to determine why particular accounting alternatives are selected by management is an example of:
a. normative research. b. deductive research. c. positive accounting research. d. analytical research.
U.S. GAAP requires firms holding securities available-for-sale to value the securities on the balance sheet after acquisition at
a. an amount based on acquisition cost. b. market value, with changes in market value of securities held at the end of the accounting period reported each period in income. c. market value, with changes in market value of securities held at the end of the accounting period not affecting reported income until the firm sells, or otherwise disposes of, the securities. d. market value, with changes in market value of securities held at the end of the accounting period reported each period in retained earnings. e. present value of future cash flows, with changes in market value of securities held at the end of the accounting period reported each period in retained earnings.
Cycles and random variations are both components of time series
Indicate whether the statement is true or false