Table of contents

1. Introduction to Accounting1h 21m
2. Transaction Analysis1h 13m
3. Accrual Accounting Concepts2h 38m
4. Merchandising Operations2h 30m
5. Inventory1h 55m
6. Internal Controls and Reporting Cash1h 16m
7. Receivables and Investments3h 8m
8. Long Lived Assets5h 1m
9. Current Liabilities2h 19m
10. Time Value of Money1h 23m
- Time Value of Money Equations
  35m
- Using Time Value of Money Tables
  47m
11. Long Term Liabilities2h 45m
12. Stockholders' Equity2h 15m
13. Statement of Cash Flows2h 24m
14. Financial Statement Analysis5h 25m
15. GAAP vs IFRS56m

1. Introduction to Accounting

Useful Information

Financial Accounting

1. Introduction to Accounting

Useful Information

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Multiple Choice

As a sales promotion, a premium is:

the amount by which the selling price of a product exceeds its cost.

a discount given to customers for early payment of their accounts.

an item offered to customers at no cost or at a reduced price as an incentive to purchase a product.

a fee charged to customers for expedited shipping.

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Verified step by step guidance

Understand the concept of a premium in the context of sales promotion. A premium is an item offered to customers at no cost or at a reduced price as an incentive to purchase a product.

Differentiate a premium from other terms such as selling price, discounts, and fees. Selling price refers to the price at which a product is sold, discounts are reductions in price for early payment or other reasons, and fees are charges for additional services like expedited shipping.

Recognize that premiums are used as a marketing strategy to encourage customers to buy a product by providing added value.

Consider examples of premiums, such as free gifts, discounted items, or promotional merchandise, which are often tied to the purchase of a specific product or service.

Apply this understanding to identify the correct definition of a premium in the given problem, ensuring clarity in distinguishing it from other financial terms.