Poole Company Began Business on January 1,2017

question 58

Multiple Choice

Poole Company began business on January 1,2017.The corporate charter authorized issuance of 5,000 shares of $1 par value common stock,and 4,000 shares of $8 par value,6% cumulative preferred stock.None of the preferred shares were issued.On July 1,Poole issued 1,000 shares of common stock in exchange for two years rent on a retail location.The cash rental price is $2,400 per month,and the rental period begins on July 1.The correct entry to record the July 1 transaction will

• A)increase Cash,$57,600 and decrease Prepaid Rent,$57,600.
• B)increase Prepaid Rent,$57,600 and increase Common Stock,$57,600.
• C)increase Prepaid Rent,$57,600;increase Common Stock,$1,000 and increase Additional Paid-In Capital-Common,$56,600.
• D)increase Prepaid Rent,$57,600;increase Common Stock,$5,000 and increase Additional Paid-In Capital-Common,$52,600.

Analyze factors that influence consumer buying decisions.

Understand the principles of price comparison and recognize misleading pricing strategies.

Distinguish between wants and needs to make informed purchasing decisions.

Recognize the different types of warranties and their implications.

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Definitions:

Type A

Friedman and Rosenman’s term for competitive, hard-driving, impatient, verbally aggressive, and anger-prone people.

Friedman

Refers to an economist, often Milton Friedman, known for his work on monetarism, free-market capitalism, and advocating for less government intervention in the economy.

Rosenman

Refers to Raymond Rosenman, a cardiologist best known for his research on the Type A and Type B personality theory and its connection to heart disease.

Cortisol

A steroid hormone produced by the adrenal cortex involved in the response to stress and metabolism regulation.