shipment. Paid the invoice within the discount period. As a result of these events‚ the company’s inventory increased by a. $57‚624. b. $57‚918. c. $57‚924. d. $59‚100. 3. _____ The entry to record the receipt of payment within the discount period on a sale of $2‚000 with terms of 2/10‚ n/30 will include a credit to a. Sales Discounts for $40. b. Cash for $1‚960. c. Accounts Receivable for $2‚000. d. Sales Revenue for $2‚000. 4. _____ Sales Returns and Allowances is increased when a. an employee
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Positioning strategies Premium pricing strategy It is used to maximize profit in areas where customers are happy to pay more. The practice is intended to exploit the tendency for buyers to assume that expensive items enjoy an exceptional reputation or represent exceptional quality and distinction Example: Louis Vuitton‚ Rolex‚ first class air travel‚ luxury hotels etc. are products and services applying a premium pricing strategy. Economy Pricing Supermarkets often have economy brands
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Financial Statement: A Summary report which quantitatively describes the financial health of a company Purpose of financial Statement: The objective of financial statements is to provide information about the financial position‚ performance and changes in financial position of an enterprise to the shareholders and lenders. it is useful to a wide range of users in making economic decisions. Components of Financial Statement: Profit & Loss Statement / Income Statement Retained earnings
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FACT BOOK Leading Brands (Soap) Marketing Strategies and Programs Competitor 1 Competitor 2 Blue Lantern Company Background My phone MY SOLID TECHNOLOGIES & DEVICES CORP. 2000 SOLID CITY. KM 16 EAST SERVICE RD BICUTAN‚ PARANAQUE CITY‚ 1700 PHILIPPINES Nature of business Rank in the industry & 2012 sales Popular brands marketed in the Philippines Agua Boundless‚ vast‚ and dynamic—these are the qualities of water (agua)‚ an element vital in life. MyPhone’s Agua line brings a wave
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selling and administrative expenses o Sale - sale discount = Net sales o Net sale – COGS = Gross profit o Sale discount + net sale= sale o Sale – net sale = sale dis o Net sale – gross profit= COGS New asset -> inventory Expense -> COGS Revenue -> sales Contra revenue (debit) – sale returns + allowances (debit) Sale discount (debit) Sale – sales return + allowance – sale discount = net sales Selling expenses: related to advertising and selling
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items on the invoice are (1) seller name‚ (2) invoice date‚ (3) purchaser name‚ (4) credit terms of the transaction‚ such as 3/10 n/30‚ (5) items ordered by the purchaser‚ (6) items shipped by the seller and invoiced to the purchaser‚ (7) quantity discount‚ if any‚ (8) total invoice amount in dollars‚ (9) date of payment‚ and (10) dollar amount paid by the purchaser. Note: Items (9) and (10) appear once payment has been received. They are not part of the original invoice data. a. Credit purchase Inventory
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ACCT TEST 1. Which of the following is NOT a characteristic of a corporation? a. Corporations are organized as a separate legal taxable entity. b. Ownership is divided into shares of stock. c. Corporations experience an ease in obtaining large amounts of resources by issuing stock. d. A corporation’s resources are limited to its individual owners’ resources. e. Corporations make up 20% of all businesses. 2. An entity that is organized according to state or federal statutes
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CHAPTER 7 Cash and Receivables ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC) Topics 1. 2. Accounting for cash. Accounting for accounts receivable‚ bad debts‚ other allowances. Accounting for notes receivable. Assignment and factoring of accounts receivable. Analysis of receivables. Petty cash and bank reconciliations. Questions 1‚ 2‚ 3‚ 4‚ 21 5‚ 6‚ 7‚ 8‚ 9‚ 10‚ 11‚ 12‚ 13‚ 14‚ 15 14‚ 15 16‚ 17‚ 18‚ 19 20 22 Brief Exercises 1 2‚ 3‚ 4‚ 5 Concepts Exercises 1‚ 2 3‚ 4‚ 5‚ 6‚ 7‚ 8‚ 9‚ 10‚ 11‚ 12 18‚ 19
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restaurant. AutoRama is there to serve the community‚ and do its part to improve its surrounding areas. AutoRama will do its part to get cars off the streets‚ and into the parking lots‚ with sponsorships of local meets and events‚ as well as providing discounts for car clubs and those wishing to designate spaces for weekends and meets. AutoRama is a partnership‚ with Nicholas owning half of the business‚ with 80‚000 invested‚ and Amanda and Kevin both investing 40‚000 each. This is enough to get the business
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TRUE-FALSE STATEMENTS 8. Closing entries are not needed if the business plans to continue operating in the future and issue financial statements each year. 9. The dividends account is closed to the Income Summary account in order to properly determine net income (or loss) for the period. 10. After closing entries have been journalized and posted‚ all temporary accounts in the ledger should have zero balances. 11. Closing revenue and expense accounts to the
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