Bison Company Reported Sales Revenue for 2013 of $900,000

question 126

Multiple Choice

Bison Company reported sales revenue for 2013 of $900,000. The products were sold with a nine-month warranty. Members of Bison's management estimate the cost of the warranty will be equal to 5% of sales revenue. Which of the following will be included in the entry to record the actual amounts paid out as a result of warranty claims?

• A)a debit to Estimated Warranty Payable for the actual amount of payments
• B)a credit to Estimated Warranty Payable for $45,000
• C)a debit to Estimated Warranty Payable for $45,000
• D)a debit to Warranty Expense for the actual amount of payments

Understand the assumptions behind using market values in WACC computation, and the rationale for these assumptions.

Grasp the concept of cost of debt and its role in WACC calculation.

Recognize the importance of cost of capital in a firm's financial decision-making process.

Be able to define Economic Value Added (EVA) and its significance.

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Definitions:

Variety of Tasks

The range of different responsibilities and activities an employee may be required to perform in their job.

Structured Interview

An interview technique where each candidate is asked the same predetermined set of questions to ensure fairness and comparability in the hiring process.

Identical Questions

Questions that are exactly the same in wording and meaning, often used in surveys or tests for consistency.

Interviewer

A person who asks questions to gather information from respondents, often for the purposes of selection, research, or media.