Indicate the effects on the accounting equation of the following business transactions of Smith Service Corporation for b) to d) below. Use proper account titles. Transaction a) is answered as a guide
a) Received cash from Don Jones; issued common stock to him.
What will be an ideal response
Increase asset (Cash); Increase equity (Common Stock)
b) Purchased equipment; signed a note payable.
c) Performed services for a customer on account.
d) At the end of the first month, paid office rent.
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Indicate whether the statement is true or false
Which of the following sampling methods would the following formula be used with?
Probability of selection = Sample size/Population size A) Simple random B) Systematic C) Cluster D) Stratified E) Judgment
For a group sales presentation, prices should be included in an appendix of the proposal document.
Answer the following statement true (T) or false (F)
Balls, Inc sells all baseballs needed by Major League Baseball (MLB). MLB agrees that prices and quantities will be determined at the beginning of each year. After 4 years, MLB decides its needs fewer balls and demands it be allowed to buy less. Balls demands MLB buy as much as in years before. If MLB sues under the UCC it will likely:
a. lose because the contract modification it seeks is not negotiated in good faith b. lose because the contract modification it seeks is not supported by new consideration c. win if the contract modification is sought in good faith d. win because the right to such a contract modification under the UCC is irrevocable without consideration e. lose because baseball is a service and thus is not within the scope of the UCC