An Industry's Buyers Have High Bargaining Power When

question 15

Multiple Choice

An industry's buyers have high bargaining power when:

• A) they purchase in small quantities.
• B) switching costs are low.
• C) it is economically impossible for them to purchase an input from several companies at once.
• D) the supply industry depends upon buyers for a very small percentage of its total orders.
• E) the industry is a monopoly.

Explain the reasons for updating accounts at the end of an accounting period under accrual accounting.

Understand the concepts of depreciation and amortization and how they affect financial statements.

Calculate and record adjustments for prepaid and accrued expenses.

Calculate and record adjustments for unearned and accrued revenues.

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Definitions:

Dishonor

To refuse to accept or pay a draft or a promissory note when it is properly presented. An instrument is dishonored when presentment is properly made and acceptance or payment is refused or cannot be obtained within the prescribed time.

Handwriting

The act or practice of writing done with the hand, using instruments such as a pen or pencil, which can be unique to each individual.

Validity

Refers to the legal effectiveness and enforceability of a contract or legal document.

HDC Status

Refers to Holder in Due Course status, a term in the Uniform Commercial Code that represents a party who has acquired a negotiable instrument under certain conditions that provide protection from defenses and claims that could impair the right to enforce the instrument.