Under the simple interest method
A)
the APR is applied to the outstanding balance on the loan.
B)
interest is deducted from the credit extended at the beginning of the loan.
C)
interest is added to the credit extended at the beginning of the loan.
D)
interest is a simple percentage of the initial amount borrowed.
A
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A company usually makes a reversing entry
A. on the first day of the next accounting period. B. at the end of the prior accounting period. C. on the second day of the next accounting period. D. on the last day of the next accounting period.
A company purchased machinery by issuing 2,000 shares of $3 par value common stock. Since the company is new, there is no established market price for its stock. How would the company record the transaction?
a. In terms of the par value of the stock issued. b. At the fair market value of the machine. c. At the cost recorded by the previous owner of the machine. d. Recording the transaction would be postponed until a market price for the stock could be determined.
Explain the concept of trial pricing. Why would a retailer implement this pricing strategy?
What will be an ideal response?
Explain the meaning of discretionary cash flow
What will be an ideal response?