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Enhanced Computers Specializes in Rebuilding Computers

question 21

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Enhanced Computers specializes in rebuilding computers. Recently reorganized into geographic divisions, the southern division headed by Dan Unowsky is outperforming the other divisions in sales and profits. However, corporate executives have noticed that Unowsky no longer sends refurbished computers to other divisions, and he has instituted special warranties and pricing systems unavailable in the rest of the company. Should Unowsky be promoted or fired?


Definitions:

Unearned Service Revenue

Income received by a company for services yet to be provided, recorded as a liability until the services are performed.

Financial Statement

Reports outlining the financial standing of a business, incorporating the balance sheet, income statement, and cash flow statement.

Permanent/Temporary

Classification of accounts where permanent accounts (real accounts) represent ongoing items that are not closed at the end of the accounting period, whereas temporary accounts (nominal accounts) are closed.

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