Differentiate between traditional and reverse auctions.
What will be an ideal response?
In a traditional auction, there is one seller and many prospective buyers. A seller puts an item up for sale and would-be buyers are invited to bid in competition with each other. As more would-be buyers become involved, there is an upward pressure on bid prices because bidding is sequential. Prospective buyers observe the bidding process and decide whether to increase the bid price. The auction ends when a single buyer who is willing to pay the highest price remains. In a reverse auction, there is one buyer and many sellers. A buyer communicates a need for a product and invites potential suppliers to bid in competition with each other. As more prospective suppliers become involved, there is a downward pressure on price. The auction ends when a single supplier willing to offer the lowest price remains. See Figure 5-6.
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Jefferson Anderson is a sole proprietor of a successful business. He is interested in incorporating to protect his personal assets. What are some disadvantages of organizing as a corporate entity?
What will be an ideal response?
Andrea Apple opened Apple Photography on January 1 of the current year. During January, the following transactions occurred and were recorded in the company's books:1. Andrea invested $13,500 cash in the business. 2. Andrea contributed $20,000 of photography equipment to the business. 3. The company paid $2,100 cash for an insurance policy covering the next 24 months. 4. The company received $5,700 cash for services provided during January. 5. The company purchased $6,200 of office equipment on credit. 6. The company provided $2,750 of services to customers on account. 7. The company paid cash of $1,500 for monthly rent. 8. The company paid $3,100 on the office equipment purchased in transaction #5 above. 9. Paid $275 cash for January utilities. Based on this information, the
balance in the cash account at the end of January would be: A. $18,700. B. $12,225. C. $15,250. D. $13,500. E. $41,450.
The allocation of a joint cost
a. is unique to service organizations. b. is not necessary in not-for-profit organizations. c. is not unique to manufacturing entities. d. cannot be accounted for in a process costing environment.
To avoid anxiety, practice, develop a positive attitude, and concentrate on friendly faces
Indicate whether the statement is true or false