Recording the adjusting entry for depreciation has the same effect as recording the adjusting entry for
a. an unearned revenue.
b. a prepaid expense.
c. an accrued revenue.
d. an accrued expense.
Ans: b. a prepaid expense.
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Which of the following is not one of the elements of a crisis communication plan?
a. Crisis communication team members with contact information b. Designated spokesperson c. Meeting place/location d. Media plan with procedures e. Organizational succession plan
Xian Corporation predicts that if a customer pays on the first sale, it is assured that it is a reliable customer. As such, it expects that customer to generate a net profit of $700 per year for 10 years. Ajax calculates present value with a 9% rate of return. There is a 70% probability that Ajax will secure a reliable customer. However, if the customer defaults, Ajax will have to incur a loss of $800. Determine the expected benefit if credit is granted.
A) $3,004 B) $3,104 C) $2,804 D) $2,904