Answer: A physical object we find, grow, or make to meet our needs and those of others.
Explanation: A commodity is an object that possesses a certain form of value, it can be used to meet an immediate need of a person.
It can be grown or produced to meet the specified needed requirements of the particular need it solves.
Answer:
Explanation:
The classified balance sheet comprises of the assets, liabilities, and stockholder equity. With the help of the accounting equation, the total assets are equal to the total liabilities including stockholder's equity.
The assets are further divided into current assets, fixed assets, and intangible assets. Similarly, the liabilities are also further divided but they do not have any intangible liabilities.
The preparation of the partial balance sheet is presented in the spreadsheet. Kindly find the attachment below:
Answer:
The journal entry will involve the credit to Unearned franchise fee revenue which amounts to $36,000
Explanation:
The journal entry which is to be recorded for signing the substantial and the collection of note receivable is as:
March 15, 2020
Cash A/c......................................Dr $36,000
Unearned franchise fee revenue A/c......Cr $36,000
As cash is received and that amounts to $6,000, the remaining balance amount of $30,000 being debited to Note receivable will be recognized during the year as and when received. And the Unearned franchise fee revenue for $36,000 is credited because signing date and the performance is yet pending.
Answer:
the time rate system
Explanation:
The wage payment system is divided into three major types:
- Time rate: employees are paid on the basis of time, e.g. per hour, day or week. This payment system doesn't consider any type productivity factors. The main advantage of using this payment system is its simplicity: e.g. amount of hour worked x wage per hour = total salary.
- Piece rate: employees are paid on the basis of quantity and quality of work performed (productivity).
- Incentive wage: combination of the two prior systems, where employees are paid a fixed time rate plus a bonus or incentive pay depending on productivity.
Answer:
A particular product line is most likely to be dropped when:
- its total fixed costs are more than its contribution margin
- its variable costs are more than its fixed costs
- its unavoidable fixed costs are more than its contribution margin.
Explanation:
The aim of every producer is to maximize profit and to make this possible, the cost of producing a particular product should fall below the contribution margin.
In the case that the gross profit is always negative due to high cost of production, further production should be discouraged.
The decision to drop a particular product line is usually reached when:
- Its total fixed costs are more than its contribution margin: Here, the company will run at a loss. It is sustainable to continue production..
- Its variable costs are more than its fixed costs: This is also an unfavorable situation that does not sustain mass production. Therefore, further production should discontinue.
- its unavoidable fixed costs are more than its contribution margin: At this rate, profit cannot be maximized. It is a lose-lose situation for the company.
