Use the Following Information for Question 14 and 15

question 95

Short Answer

Use the following information for question 14 and 15
Swing High Inc. offers its 100 employees to participate in an employee share-purchase plan. Under the terms of plan, employees are entitled to purchase 10 shares at 10% discount. The par values of shares were $10. Overall, 60 employees accepted the offer and each employee purchased six shares. The market price on purchase date was $100.
-Swing High Inc. will credit Share Premium―Ordinary for:
a. $32,400
b. $ 3,600
c. $36,000
d. $28,800

Distinguish between periodic and perpetual inventory systems and their impact on inventory management.

Understand the significance of liquidity ratios like the acid-test ratio and current ratio in evaluating a company's short-term financial health.

Clarify the retail and wholesaler roles in the distribution chain and their business models.

Understand the differences between merchandising and service companies in generating net income.

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Definitions:

Riparian Zone

Areas adjacent to rivers and streams with distinct vegetation and soil conditions, important for ecosystem health and biodiversity.

Trampling

The damage to vegetation or soil compaction caused by heavy foot or vehicle traffic.

Overgrazing

The depletion of vegetation due to livestock grazing at a higher density than the land can sustainably support, leading to soil erosion and desertification.

Aquaculture

The cultivation of aquatic organisms such as fish, shellfish, and seaweeds in controlled environments, intended for consumption or other human use.