Which of the following statements regarding sales returns and allowances is not true?

Group of answer choices

A reduction in the selling price because of damaged merchandise is included in sales returns and allowances.

Sales returns and allowances do not have an impact on gross profit.

Sales returns and allowances are closed to the Income Summary account.

Sales returns and allowances are rarely disclosed in published financial statements.

Sales returns and allowances are recorded in a separate contra-revenue account.

During June, Thuy Bui’s business performed services for a specific customer for which the fee was $5,000. Payment was received in the following month July.

Required:

1. Was the revenue earned in June or July? How is profit determined under the cash basis of accounting and the accrual basis of accounting?

2. What journal entries should be recorded under accrual accounting in June and July

3. What journal entries should be recorded under cash accounting in June and July?

Which of the following statements is true of monopolies?

i. They have market power, so they can increase their price without losing customers.

ii. Their marginal revenue is less than their price.

iii. They earn a profit by producing at a point where price is greater than marginal cost.

a. i only

b. ii only

c. i and ii only

d. ii and iii only

e. i, ii and iii are all true

A firm made a significant increase in the firm’s marketing expense towards the end of the fiscal year 2019. Since the marketing splurge is so late in the fiscal year, there is no expected increase in revenue in 2019. Explain how this investment would impact the firm’s Asset Turnover, operating margin, FCF, EVA, and TSR in 2019? In your opinion, how did this decision impact the firm’s financial performance in 2019 (increase, decrease, neutral, or not sure)? Explain!

The first company: preparing the income statement in the short way to the company, and the data is below?

Here is the information for Al-Rafidain Company, which is required to prepare the short-term income statement:

400,000 net sales, 300,000 dividend income, 150,000 rental income, 75,000 consulting revenue, 100,000 cost of goods sold, 35,000 marketing expenses, 30,000 selling expenses, 20,000 administrative expenses, 10,000 maintenance expenses, 10,000 tax expenses

Berwick Ltd has always had a strategy of cost leadership; that is, selling high volumes of low-cost products at a competitive price. During a recent sales slump, Berwick Ltd saw its sales revenues drop dramatically and has decided to move strategically to a product differentiation strategy; that is, to sell lower volumes of high-quality products at a premium price. Discuss in your workshop group: What are the implications of this strategy change for the revenue cycle?

Prepare adjusting entries for the following items on December 31, the end of the fiscal year for Carson Carpets. The company initially records cash received in advance of performing the service as a liability, and prepaid expenses as current assets.

a) Amortization on equipment, $2,500

b) Services performed but unbilled, $3,500

c) Salaries owed to employees at year end, $2,500

d) Unearned service revenue earned, $5,500

e) Supplies used during the year, $3,200

gain or loss is recognized on the transfer of assets from one corporation to another for stock or securities of the transferee corporation as long as the transferor owns 80% of the transferee's stock after the transaction.

• Create a scenario where the transfer of property to a controlled corporation under Section 351 of the Internal Revenue Code (IRC) results in taxation to the transferor.
• Speculate as to the reasons that gain treatment in the current year may be preferred to the deferral of gain.
• Provide a tax-planning strategy.

Consider the following statement:

"Canada should introduce a national carbon tax. This would correct negative externalities associated with pollution AND bring the government a lot of revenue so that it could reduce or eliminate income taxes, which would help grow the economy by increasing the incentive for people to work."

Briefly comment on this idea. You can express your opinion, but don't forget, your answer should demonstrate some concepts that you've learned in this course.

On January 1, 2016, Domino Incorporated provides a loan to Jon Jon Associates in return for a $5,000,000, 3 year, 5% interest note maturing on December 31, 2018.      The normal borrowing rate for Jon Jon is 8%.

1.       Prepare the journal entry to record the note receivable

2. Prepare an amortization table using the effective interest method

3. Prepare the journal entries to record the interest revenue in 2016, 2017, & 2018 for Domino