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2 years ago

Economics - What’s an example where the market approach would not be appropriate? Why?

1 answer:

5 0

try defining what a market approach is: a method of determining the value of a product based on the selling price of similar products.

you can then proceed to think of a specific product or brand which is extremely overpriced (meaning sales volume will be low) or underpriced (meaning profit is not as much as it could be).

a simple example of this could be misjudging the value of real estate, and selling houses, land and other infrastructure for either much more or much less than you should

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At the end of the year, Dahir Incorporated’s balance of Allowance for Uncollectible Accounts is $2,400 (credit) before adjustmen

mafiozo [28]

Answer:

The adjustment Dahir would record for Allowance for Uncollectible Accounts:

Debit Bad debts expense $9,600

Credit Allowance for Doubtful Accounts $9,600

Explanation:

At the end of the year, before adjustment, Dahir Incorporated’s balance of Allowance for Uncollectible Accounts is $2,400 (credit).

The company estimates uncollectible accounts to be $12,000

Bad debts expense = $12,000 - $2,400 = $9,600

The adjustment to record Allowance for Uncollectible Accounts:

Debit Bad debts expense $9,600

Credit Allowance for Doubtful Accounts $9,600

8 0

3 years ago

After the delivery of the condominium documents in the TREC Residential Condominium Contract the buyer may terminate the contrac

sweet-ann [11.9K]

Answer:

The buyer would have a 12-day option to terminate the contract. Otherwise, he or she might not have any other option than to stick to the contract. (That is, the buyer will not have the unrestricted right to terminate the contract again.)

Explanation:

7 0

3 years ago

Explain two business objectives a business might have<br><br> Will give BRAINLIEST

JulijaS [17]

Productivity of People and Resources
Employee training, equipment maintenance and new equipment purchases all go into company productivity. Your objective should be to provide all of the resources your employees need to remain as productive as possible.

Dealing with Change
Change management is the process of preparing your organization for growth and creating processes that effectively deal with a developing marketplace. The objective of change management is to create a dynamic organization that is prepared to meet the challenges of your industry.

6 0

2 years ago

Milo Clothing experienced the following events during 2016, its first year of operation: 1. Acquired $12,000 cash from the issue

Serga [27]

Answer:

Explanation:

The four transactions will be recorded in the general journal as follows:

1) Debit cash $12,000

Credit common stock $12,000

(To record the sale of common stock)

2) Debit purchases $5,600

Credit cash $5,600

(To record purchase of inventory in cash)

3) Debit cash $5,712

Credit sales $3,360

Credit gross profit $2,352

(To record the sale of inventory in cash)

4) Debit advertising expenses $650

Credit cash $650

(To record the payment of advertising expenses in cash)

5 0

3 years ago

Firms HD and LD are identical except for their level of debt and the interest rates they pay on debt—HD has more debt and pays a

Luden [163]

Answer:

2.41%

Explanation:

The difference between the two firms' ROEs is shown below:-

Particulars Firm HD Firm LD

Assets $200 Debt ratio 50% Debt ratio 30%

EBIT $40 Interest rate 12% Interest rate 10%

Tax rate 35%

Debt $100 $60

Interest $12 $6

($100 × 12%) ($60 × 10%)

Taxable income $28 $36

($40- $12) ($40 - $6)

Net income $18.2 $22.1

$28 × (1 - 0.35) $36 × (1 - 0.35)

Equity $100 $140

($200 - $100) ($200 - $60)

ROE 18.2% 15.79%

($18.2 ÷ $100) ($22.1 ÷ $140)

Taxable income = EBIT - Interest

Net income = Income - Taxable income

Equity = Assets - Debt

ROE = Net income ÷ Equity

Difference in ROE = ROE Firm HD - ROE Firm LD

= 18.2% - 15.79%

= 2.41%

So, for computing the difference between the two firms' ROEs we simply deduct the ROE firm LD from ROE firm HD.

3 0

3 years ago