Answer:
B. $0
Explanation:
he transaction between Lin and Zee appears to be a conditional sale. The reason being that zee hardware has the right to return the machine if unable to resell it. According to their agreement, should Zee hardware return the machine, its obligation to Lin will be zero.
As per Lin's assessment, and based on their previous transactions, the probability of Zee returning the machine is very high. Lin is sure that Zee hardware will not sell the machine. For this reason, Lin should not record the transactions as a sale.
Answer: A. A QR code that is scanned and decodes information directly on the phone
Explanation:
This is the best option as QR codes are usually inserted into print media to give more information about something when they are scanned. They can even be used to give discounts.
Human technology has not reached the point where either pop-ups, interactive content, or image projections can appear on print media so options B through E are wrong.
Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr $4,680
Credit card expenses A/c Dr $120 ($4,800 × 2.5%)
To Sales $4,800
(Being the deposit is recorded and the remaining balance is debited to the cash account)
We debited the cash and the credit card expenses account and credited the sales account so that proper entry would be recorded.
Answer:
A one-time error in the application of the lower of cost or market/net realizable value (LCM/NRV) rule in the current period distorts financial results for the current accounting period:
a. only.
Explanation:
The lower of cost or market (LCM/NRV) method states that when valuing a company's inventory use the historical cost or the market value, whichever is lower. The historical cost refers to the cost at which the inventory was purchased. The market value is the current price. The implication is that while the historical cost remains static, the market value shifts over time.
Therefore, if there is a one-time error made in the use of the LCM/NRV rule, it only affects the current period. The next accounting period will restart the process of comparing the historical costs with the market value, thus obviating the need to repeat the error.
