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Collins Landscape Company purchased various landscaping supplies on account to be used for landscape designs for their customers. How will this business transaction affect the accounting equation?
a) Increase Assets (Supplies) and increase Liabilities (Accounts Payable)
b) Increase Assets (Supplies) and decrease Assets (Cash)
c) Increase Assets (Supplies) and decrease Owner's Equity (Supplies Expense)
d) Increase Owner's Equity (Supplies Expense) and increase Liabilities (Accounts Payable)
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Are the materials costs and processing costs relevant in the choice between alternatives A and B? (Ignore the equipment rental and occupancy costs in this question.)
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A meeting of senior managers at the Pringly Division has been called to discuss the pricing strategy for a new product. Part of the discussion will focus on estimating sales for the new product.
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