The reason for the existence of credence attributes is that:
A) customer lacks the expertise to make an evaluation.
B) the products are familiar to most of the customers.
C) the products are intangible and customers can only feel it.
D) customers are knowledgeable and concerned about the quality of the products.
A
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Bonds with a face amount $1,000,000 are sold at 106 . The journal entry to record the issuance is
a. Cash 1,000,000 Premium on Bonds PayableBonds Payable 60,000 1,060,000 b. Cash Premium on Bonds Payable 1,060,000 60,000 Bonds Payable 1,000,000 c. Cash Discount on Bonds Payable 1,060,000 60,000 Bonds Payable 1,000,000 d. Cash Bonds Payable 1,060,000 1,060,000
Which inventory cost flow assumption is allowed under U.S. GAAP but not under IFRS? Explain why some U.S. companies will lobby strongly to keep this method as an allowable alternative.
What will be an ideal response?
At December 31 . 2013 . the Agricole Company had 600,000 shares of common stock outstanding. On September 1 . 2014, an additional 400,000 shares of common stock were issued. In addition, Agricole had $20,000,000 of 8 percent convertible bonds outstanding at December 31 . 2013 . which are convertible into 400,000 shares of common stock. No bonds were converted into common stock in 2014 . The net
income for the year ended December 31 . 2014, was $7,000,000 . Assuming the income tax rate was 40 percent, what should be the diluted earnings per share for the year ended December 31 . 2014? a. $5.00 b. $5.53 c. $7.02 d. $10.85
The district of Dansas in Nerito, a European country, is a major producer of walnuts. All producers in the district sell packaged walnuts. The market structure is flexible enough for producers to enter and leave the market as and when they wish, but no single producer has control over the prices of the product. Which of the following market structures exists in Dansas?
A. Pure competition B. Monopoly C. Monopolistic competition D. Oligopoly