Answer:
A sole proprietorship is a form of business owned and managed by one person.
Explanation:
Advantages:
1. It involves small capital to set up the business.
2. There is a close relationship between owner and customers which improves personalised product/service delivery.
3. There is privacy in conducting business affairs.
4. All profits accrue belongs to the business owner.
Disadvantages:
1. The sole proprietor bears the risks alone.
2. There is limitation in expansion
3. Unlimited liability in cases of business failure, his assets maybe sold to pay of debts.
The advantages of owing a sole proprietorship are:
1. Ability to manage the business.
2. The low startup cost.
Answer: Captive product pricing
Explanation: Captive product pricing refers to the strategy under which the company offers lower prices for the main product but earns revenue by charging higher for the captive products that are essential for the use of the main product.
In the given case, Hewlett packard are charging low for their printers but the prices of cartidges are high.
Hence from the above we can conclude that the above example depicts captive product pricing.
Answer:
$6.25 per ton of coal
Explanation:
the depletion base = purchase cost + restoration costs
- purchase cost = $20 million
- restoration costs = $6 million
depletion base = $26,000,000
depletion rate per ton of coal = (depletion base - salvage value) / estimated reserves = ($26,000,000 - $1,000,000) / 4,000,000 = $6.25 per ton of coal
The depletion rate follows the same concepts as depreciation of fixed assets, but instead of using a fixed asset, you are extracting materials and decreasing the value of the deposits.
Answer:
a, Journal Entries to record transactions
Account Titles Debit Credit
Cash $5,412.36
Cash Short and Over $0.71
($5,413.07 - $5,412.36)
Sales $5,413.07
The actual cash in cash register is debited to cash account and cash receipts per cash register tally is credited to sales account and the balancing figure is debited or credited to Cash short and over account.
b. Journal Entries to record transactions
Account Titles Debit Credit
Cash $3,712.95
Cash Short and Over $0.79
(3,712.95 - 3,712.16)
Sales $3,712.16
