The Clarion Company provides a one-year warranty on all merchandise it sells. In Year 1, the company recorded sales of $500,000. It estimated that the warranty costs on these sales would amount to $2,000. In July, Year 2, Clarion paid $250 to satisfy a warranty claim. Indicate whether each of the following statements is true or false._____ a) Clarion's recognition of the warranty obligation at the end of Year 1 reduced total assets and total equity._____ b) Clarion's recognition of the warranty obligation at the end of Year 1 increased Clarion's total liabilities._____ c) The July, Year 2 transaction reduced total assets and net income for Year 2._____ d) The July, Year 2 transaction reduced Clarion's total liabilities._____ e) The recognition of the warranty obligation at the end of
Year 1 did not affect Clarion's revenue for the year.
What will be an ideal response?
a) This is false. The recognition of the warranty obligation would increase liabilities (warranties payable) and reduce equity.
b) This is true. The recognition of the warranty obligation would increase warranties payable, a liability.
c) This is false. The payment of $250 to satisfy the warranty claim decreased assets (cash) and decreased liabilities (warranties payable).
d) This is true. The payment of a warranty claim reduced warranties payable, a liability.
e) This is true. The recognition of the warranty obligation increased expenses, but did not affect revenue.
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The amount of trust we place in another is largely based on our ______ of that person’s character.
Fill in the blank(s) with the appropriate word(s).
The most successful companies
a. execute a dominant strategy but demonstrate characteristics of one or two supporting types. b. recognize that they can effectively execute only one archetype and pay little attention to developing competencies required by another archetype. c. focus on revenue growth even if it means sacrificing profitability. d. try to blend the best characteristics of the four strategic archetypes. e. pursue operational excellence because most buyers seek low cost and convenience above all other sources of customer value.
The ____ trigger clause allows a trigger to include multiple triggering events in a single trigger.
A. MULTIPLE B. MULTIPLE TRIGGER C. COMPOUND D. COMPOUND TRIGGER
Seller A issued a counteroffer to Buyer B and Buyer C. Buyer B accepted the counteroffer, but before A can notify C, C also accepts. What result?