Answer the following statement(s) true (T) or false (F)
1. A sole proprietor may transfer his or her business to another individual by selling all of his or her shares of stock to that individual.
2. Sole proprietorships are created and governed
by state statute.
3. Sole proprietors can attract new employees by offering shares of their business as compensation.
4. The sole proprietorship is dissolved by filing a certificate of dissolution with the secretary of state.
1. FALSE
2. FALSE
3. FALSE
4. FALSE
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The vast array of products that consumers buy can be classified on the basis of shopping habits and are broken down into four main areas. List these four main classifications of consumer goods and explain what elements are included within
What will be an ideal response?
Which of the following is not added to net income as an adjustment to reconcile net income to cash from operating activities on the statement of cash flows?
a. Increase in an accrued liability b. Amortization of discount on bond payable c. Loss on sale of operational asset d. Increase in deferred tax asset e. None of these answers is correct.
Approaches to enhancing differentiation through changes in the value chain do not include
A. coordinating with employees to create a greater incentive system to encourage worker productivity. B. coordinating with suppliers to speed up new product development cycles. C. coordinating with retailers to enhance the buying experience and building a company's image. D. collaborating with suppliers to improve many dimensions affecting product features and quality. E. coordinating with distributors or shippers to lower shipping costs.
On July 1, Ferguson Company sold merchandise in the amount of $5,800 to Tracey Company, with credit terms of 2/10, n/30. The cost of the items sold is $4,000. Ferguson uses the perpetual inventory system and the gross method. On July 5, Tracey returns some of the merchandise, which is not defective. The selling price of the merchandise is $500 and the cost of the merchandise returned is $350. The entry or entries that Ferguson must make on July 5 is:
A.
| Accounts receivable | 500 | |
| Sales returns and allowances | 500 |
B.
| Accounts receivable | 500 | |
| Sales returns and allowances | 500 | |
| Cost of goods sold | 350 | |
| Merchandise inventory | 350 |
C.
| Sales returns and allowances | 500 | |
| Accounts receivable | 500 | |
| Merchandise inventory | 350 | |
| Cost of goods sold | 350 |
D.
| Sales returns and allowances | 500 | |
| Accounts receivable | 500 |
E.
| Sales returns and allowances | 350 | |
| Accounts receivable | 350 |