Revenue is equal to the cash received by a company during an accounting period
Indicate whether the statement is true or false
False
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Cell phone manufacturer LZT has to choose between two options for sourcing parts: Japan-based Keiko Inc. and US-based Global Tech. How can Keiko reduce the total customer cost for LZT?
What will be an ideal response?
On February 3, Smart Company sold merchandise in the amount of $2600 to Truman Company, with credit terms of 2/10, n/30. The cost of the items sold is $1800. Smart uses the perpetual inventory system and the gross method. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is:
A.
| Cash | 1720? | |
| Accounts receivable | 1720? |
B.
| Cash | 2600? | |
| Accounts receivable | 2600? |
C.
| Cash | 2520? | |
| Sales discounts | 36? | |
| Accounts receivable | 2556? |
D.
| Cash | 2548? | |
| Sales discounts | 52? | |
| Accounts receivable | 2600? |
E.
| Cash | 1800? | |
| Accounts receivable | 1800? |
Which of the following is TRUE of a purchases journal?
A) For a periodic inventory system, the Merchandise Inventory DR column is replaced with a column titled Cost of Goods Sold DR. B) Cash purchases are recorded in the purchases journal. C) For a perpetual inventory system, a column titled Purchases DR is needed. D) The Other Accounts DR column is used for purchases on account of items other than merchandise inventory and office supplies.
________ is a business arrangement that occurs when the owner of intellectual property contracts to permit another party to use the intellectual property
A) General partnership B) Leasing C) Licensing D) Joint venturing