Indicate how each event affects the elements of financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. Assume that Frank Company uses a perpetual inventory system.Increase = I Decrease = D No Effect = NA(Note that "No Effect" means that the event does not effect that element of the financial statements or that the event causes an increase in that element that is offset by a decrease in that same element.) Wetzel Co. paid $40 of freight cost to have merchandise shipped to one of its customers under terms FOB destination.AssetsLiabilitiesStk. EquityRevenuesExpensesNet IncomeStmt of Cash Flows???????
What will be an ideal response?
(D) (NA) (D) (NA) (I) (D) (D)
The cost of shipping goods to customers is an expense called transportation-out. This transaction decreases assets (cash) and increases expenses (transportation-out), which decreases net income and stockholders' equity. It is reported as a cash outflow for operating activities.
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The hypothesis that an increase in the expected inflation rate will cause the nominal interest rate to rise and the real interest rate to remain unchanged is the
A. Fisher hypothesis. B. rational-expectations theory. C. Okun's hypothesis. D. Keynesian hypothesis.
When negotiators act as agents in the negotiation process, when they are not necessarily presenting their own issues and interests but also representing the perspective of others who may or may not be at the table, they are in a situation called a(n)
A. bystander relationship. B. audience relationship. C. negotiator relationship. D. agency relationship.
A marketing vice-president tells the marketing department to schedule a test market in Dallas because he feels that this city is "typical" of the composition of the target market for a new product nationally. The vice president is asking for a(n) ____.
A. judgment sample B. area sample C. cluster sample D. convenience sample
Explain how a market follower can gain advantage from a market leader
What will be an ideal response?