Answer:
The adjusting entry that should be recorded at the end of the accounting period:
Debit Unearned revenue $500
Credit Revenue $500
Explanation:
Following the Accrual accounting - an accounting method that revenue or expenses are recorded when a transaction occurs rather than when payment is received or made.
Bobcat Boards and Skis received $800 in advance for future services to be performed. At the end of the month, $300 worth of services were still owed to the customer.
The value of services were performed = $800 - $300 = $500.
The adjusting entry:
Debit Unearned revenue $500
Credit Revenue $500
Answer:
$30, 154.50
Explanation:
For compute the maximum amount, we need to calculate the present value which is shown below:
Present value would be
= Paying amount for five years × PVIFA factor at 11.2% for 5 years
= $8,200 × 3.6774
= $30,154.68 approx
Simply we multiplied the paying amount with the PVIFA factor to get the maximum paying amount
And, refer to the PVIFA table
Answer:
Letter D is correct. <em>Grouping people according to their psychological characteristics, values, and lifestyles.</em>
Explanation:
Psychographic segmentation is a market segmentation technique where individuals are grouped according to psychological traits such as lifestyle and behavioral patterns which may be: opinions, social status, eating habits, daily routine and many others.
This type of segmentation aims to identify psychological traits and values that influence individual consumer behavior.
Answer:
Economic Value Added (EVA) = $2,620
Explanation:
WACC = 11%
Capital = $20,500
Sales = $11,500
Operating cost = $5,000
Tax rate = 25%
EBIT = Sales - Operating cost
EBIT = $11,500 - $5,000
EBIT = $6,500
Economic Value Added (EVA) = EBIT (1 - T) - (WACC * Capital)
Economic Value Added (EVA) = 6,500*( 1 - 0.25) - (0.11 * $20,500)
Economic Value Added (EVA) = $4,875 - $2,255
Economic Value Added (EVA) = $2,620
