For Each of the Following,indicate the Effect the Situation Would

question 134

Essay

For each of the following,indicate the effect the situation would have on net income in the current period.
O overstate net income
U understate net income
N/A not applicable;no effect on net income
_____ recording prepaid costs as current expenses.
_____ recording an expense at more than the actual cost.
_____ failing to record the receipt of a payment by a customer on account.
_____ failing to record some supplies received.
_____ recording unearned revenue as revenue.
_____ recording an expense as revenue.
_____ failing to record the company issuing additional shares of its own common stock.

Understand the impact of societal and cultural factors on consumer behavior including the influence of popular culture and big data.

Discuss the evolution of consumer behavior analysis from buyer behavior to a more comprehensive approach.

Apply demographic trends and segmentation for creating targeted marketing opportunities.

Understand the concept of market segmentation and its variables.

---

Definitions:

Tax Rate Structure

The method or system by which taxes are levied on income, goods, services, and properties, which can be progressive, regressive, or proportional.

Proportional

A tax structure where the rate remains constant regardless of income level.

Progressive Tax Structure

A tax system where the tax rate increases as the taxable amount increases, leading to higher earners paying a larger percentage of their income in taxes.

Marginal Rates

These are the tax rates that apply to each additional dollar of income, used in a progressive tax system where tax rates increase as income rises.