Adidea Corp. sold merchandise on credit. What accounts will the company use to document the transaction?

After being influenced by frequent advertisements, Jeremy buys a new cell phone. However, he discovers that the new cell phone d

svetlana [45]

Answer: The actual value

Explanation: In simple words, actual value refers to the utility satisfaction that a customer receives after purchasing a product.

The only difference between perceived value and actual value is that while calculating perceived value the customer compares his product with other product . However, while calculating actual value he only compares the existing performance with his or her expectations.

In the given case, Jeremy feels the product he buy is no as useful as he thought. Hence it lacks actual value.

5 0

2 years ago

Robert Wilkins has prepared the following list of statements about process cost accounting. Identify each statement as true or f

Alex17521 [72]

Answer:

Identification of True or False Statements:

1. Process cost systems are used to apply costs to similar products that are mass-produced in a continuous fashion.

A. True

2. A process cost system is used when each finished unit is indistinguishable from another.

A. True

3. Companies that produce soft drinks, movies, and computer chips would all use process cost accounting.

A. True

4. In a process cost system, costs are tracked by individual jobs.select between

False

5.Job order costing and process costing track different manufacturing cost elements.

B. False

6. Both job order costing and process costing account for direct materials, direct labor, and manufacturing overhead.

A. True

7. Costs flow through the accounts in the same basic way for both job order costing and process costing.

A. True

8. In a process cost system, only one work in process account is used.

A. True

9. In a process cost system, costs are summarized in a job cost sheet.

B. False

10. In a process cost system, the unit cost is total manufacturing costs for the period divided by the equivalent units produced during the period.

A. True

Explanation:

A process costing system is a method of collecting and assigning manufacturing costs to the units produced. It is used by companies that produce similar or identical units of product in batches employing a consistent process. The unit cost is arrived at by averaging units produced to the total cost of the process.

5 0

2 years ago

Which of the following statements about the capital asset pricing model (CAPM), which is the "father" of the security market lin

HACTEHA [7]

Answer:

(d) All of the above responses are correct

Explanation:

The Capital asset pricing model (CAPM) helps in calculation of expected rate of return by an investor which is dependent upon risk premium and beta.

Beta refers to sensitivity of return from stock with respect to the market return.

Risk premium refers to the additional rate of return which an investor must be provided so as to compensate him for additional risk he assumes.

ER = Rf + β (Rm- Rf)

ER= Expected Rate Of Return

Rf= Risk Free Rate of Return

Rm= Return from market

β = sensitivity index of security return to market return

Security Market Line (SML) is a graphic representation of CAPM.

Thus, (d) is the correct option

7 0

2 years ago

Your Task Revise the following sentences to emphasize the perspective of the audience and the "you" view.

zzz [600]

Answer:

Using the ''You'' view means that the audience is made the subject of the correspondence. This makes the message more effective as the audience will see it from their perspective.

You will issued a new chip-enabled credit cards to replace expired or lost cards and prevent increasingly costly pay-outs resulting from fraud.

With a new schedule of low-cost, any-day flights, you can now fly to Hawaii whenever you want.

Should you wish to rent power equipment, you must demonstrate your proficiency in its use.

Employees are requested to complete the attached online survey by April 1 to enable the development of master schedule to efficiently manage your summer vacations.

Your content can now be shared, liked and subscribed to via the new free app, Fan Boosters.

You can now save costs on the location of your training class by having a customized class for your employees right in your own building.

You can now only receive store credit for returned merchandise.

3 0

2 years ago

Listed below are several transactions that took place during the first two years of operations for the law firm of Pete, Pete, a

In-s [12.5K]

Answer:

1. Computation of Net Operating Cash flow

Particulars Year 1 $ Year 2 $

<u>Net Operating Cash flow</u>

Cash collected from clients $167,000 $197,000

Less: Cash Disbursement

Salaries $97,000 $107,000

Utilities $33,500 $47,000

Purchase of insurance policies $62,100 $0

Net Operating Cash Flow -$25,600 $43,000

Therefore, net operating cash flow for year 1 is -$25,600 and year 2 is $43,000.

2. Income Statement for each year

Particulars Year 1 $ Year 2 $

Revenue $184,000 $234,000

Expenses:

Salaries $97,000 $107,000

Utilities $38,500 $42,000

Insurance Policy($62, 100/3) $20,700 $20,700

Net Income $27,800 $64,300

Working:

Utilities for year 2 = $33,500 + $47,000 - $38,500 = $42,000

3. Computation of account receivables

Particulars Year 1 $ Year 2 $

Account receivables beginning balance $0 $17,000

Add: Account billed to client $184,000 $234,000

Less: Cash collections from clients $167,000 $197,000

Ending account receivables $17,000 $54,000

Therefore, net amount of account receivables for year 1 is $17,000 and year 2 is $54,000

4 0

2 years ago