a) What is the effect on the accounting equation of the seller for granting an "allowance" for merchandise that the customer is not satisfied with?b) What is the effect of the above situation on the accounting equation of the purchaser?For both questions, assume that the merchandise had been sold on account, and the invoice had not yet been paid.
What will be an ideal response?
a) Effect for seller of granting an allowance for damaged or inferior goods:
Assets are decreased (accounts receivable) and equity (revenue) is decreased.
b) Effect for purchaser of getting an allowance for receiving damaged goods:
Assets are decreased (inventory) and liabilities (accounts payable) are decreased.
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Typically, a profitable company that pays relatively high dividends:
A. is a bad investment. B. is an attractive investment for those seeking a steady income, like retired people. C. will reinvest more profit which can lead to smaller growth potential. D. will experience more growth in stock price over time.
When Starbucks first opened, many critics suggested, "No one will pay $4 for a cup of coffee." Starbucks's critics suggested consumers would not be ________ to the company's offerings.
A. perceptive B. reachable C. responsive D. identifiable E. quantifiable
Decorte Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-hours. The company based its predetermined overhead rate for the current year on the following data:Total direct labor-hours10,000Total fixed manufacturing overhead cost$33,000Variable manufacturing overhead per direct labor-hour$2.50Recently, Job K332 was completed with the following characteristics:Number of units in the job70Total direct labor-hours140Direct materials$455Direct labor cost$5,320The amount of overhead applied to Job K332 is closest to: (Round your intermediate calculations to 2 decimal places.)
A. $462 B. $350 C. $1,162 D. $812
The primary objective of managing waiting lines is to ______ throughout any service or manufacturing facility.
A. maximize total costs B. minimize total costs C. maximize total time D. minimize production volume