QUESTION 57 EXTRA CREDIT Randi's Jelly, Ltd collected the following data about their monthly contribution margins from sales of jelly Moonberry Yogberry Merryberry Selling Price Variable Cost Contribution Margin Units Sold 12,000 10.000 Randi believes that she could increase sales of Yogiberry by 5,000 units per month it more attention were devoted to it and less to Moonberry. Moorberry sales would decrease by 2,000 per month. What change in income would occur if this action were taken? A Decrease of $10,000 B. Increase of $20,000 C. Income would remain the same D. Increase of $10,000 E none of the listed choices QUESTION 1 Which of the following best describe what happens when a business issues bonds at discount? A. assets increase and liabilities decrease B. assets increase and liabilities increase C. revenue increases and assets increase D. assets decrease and liabilities increase E. expenses increase and assets decrease QUESTION 2 The accounting equation is A. Revenues. Cost of Goods Sold - Gross Margin B. Assets = Liabilities + Owners' Equity C. Having the same number of asset accounts on the balance sheet as the prior year D. Debits - Credits E. Recording all expenses incurred in generating the revenues of the period 5 poi QUESTION 3 if beginning Jones' Company's Prepaid Rent is $6,000 and the Company paid 5 months' rent of $15,000, the ending financial statements would include A. Rent Payable of $15,000 B. Prepaid Rent of $ 21,000 C. Rent Payable of $3,000 D. none of the listed choices E. Rent Expense of $15,000. QUESTION 4 5 point Matt will sell you a new thing for $2,000. The deal is 10% down and the rest payable in four equal annual payments that include interest at 2%. You called the bank and they said that they would charge you 10% for a similar loan. How much are you really paying for the thing under Matt's deal? A. $ 1,498,47 B. $2,000.00 C. $1,698.47 D. $ 1,372.88 E $1,800.00