Marta finds a chest inscribed "Jack Sparrow" that contains $750,000 of cash while diving among the coral reefs off Key West, Florida. The U.S. Customs and the DEA denied knowledge of the cash, so Marta keeps it.
I.Recognition will not occur because the windfall would not be considered as derived from capital or labor.II.The all-inclusive Income Concept explains the recognition of income from whatever source derived.?
A. Only statement I is correct.
B. Only statement II is correct.
C. Both statements are correct.
D. None of the statements are correct.
Answer: B
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Jupiter Services sells service plans for commercial computer maintenance. The price for each service plan is $1,650 per year, paid in advance. On October 1, 2018, a service plan was sold to a new customer for cash. Prepare the journal entry to record this transaction. Omit explanation.
What will be an ideal response?
The options for remedying a supplier-related cost disadvantage include
A. shifting into the production of substitute products. B. instituting forward vertical integration. C. shifting from a low-cost leadership strategy to a differentiation or focus strategy. D. pressuring suppliers for more favorable prices, switching to lower-priced substitute inputs, and collaborating closely to identify mutual cost-saving opportunities. E. cutting selling prices and trying to win a bigger market share.
Ruggers Corp is a maker of a range of highly popular cruise motorcycles. Tim buys a Ruggers motorcycle from a dealership and suffers an accident
While recuperating from his injuries, he learns that Ruggers has recalled all motorcycles it had manufactured and sold in the previous two years, owing to a previously-unknown defect in their braking systems. Tim brings a product liability lawsuit against the motorcycle manufacturer and claims $50,000 in damages. The defect in the motorcycle is found to be half responsible for the accident, while Tim's own negligence of traffic rules contributed to the rest. Under the doctrine of contributory negligence, what would be the ruling of the court hearing this case? A) Tim can recover $25,000 worth of damages from Ruggers and the rest from the dealership from which he purchased the motorcycle. B) Tim can recover $50,000 worth of damages from the motorcycle manufacturer. C) Tim can recover $50,000 worth of damages, plus any punitive damages that may be awarded by the jury. D) Tim cannot recover any damages from the motorcycle manufacturer.
Standard costs are developed by the cooperative effort of purchasing, production, human resources, and accounting personnel
Indicate whether the statement is true or false