Which of the following is true regarding the traditional approach to estimating the fair value of an intangible asset?
a. The traditional approach requires the use of the risk-free rate of interest.
b. The traditional approach requires the use of various possible outcomes and their probability of occurrence.
c. The traditional approach requires the use of judgment in determining a risk-adjusted rate of interest.
d. The traditional approach requires the assumption that cash flows occur at the beginning of each period (an annuity due).
C
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On November 1, 2018, A & C Janitorial Supply sold merchandise on account with a cost of $4,200 for $6,000 and payment terms of 3/10, n/30. The company uses the gross method and a perpetual inventory system. Prepare the journal entries for this transaction. Omit explanations.
What will be an ideal response?
Accountants play many roles relating to the accounting information system, including all of the following except
a. system users b. system designers c. system auditors d. system converters
Marcus employs a real estate broker, Dean, to sell his house. Dean's express powers are to advertise and market the house for sale, show the house to prospective buyers, and accept offers from persons who want to purchase the house. He is not allowed to complete a deal without Marcus's consent. Marcus goes away on a month-long trip where he cannot be contacted. During this time, a short circuit in the house causes a power outage. Dean uses his authority to hire an electrician to repair the circuits and restore electricity in the house. Marcus then comes back and pays Dean for the electricity repair. What is the nature of the agency that Dean used to fix the electricity problem in the house?
A. implied agency B. agency by ratification C. power of attorney D. express agency
Under her organization’s ______ plan, Nicole is paid for each widget she produces.
A. bonus B. commission C. merit pay D. piecework