Answer:
C. a debit to Bad Debts Expense account
Explanation:
using the direct write-off method, we do not use the allowance. At write-off we recognize the directly the bad debt expense and decrease the accounts receivable.
Is important to notice that the direct method violates the accounting matching principles as, it recognize an expense based on events which occured at prior periods
Answer:
a
Explanation:
greater output and charge lower price than the monopolist
Answer:
c. The net cash flow is positive.
Explanation:
A net positive balance occurs when the total cash inflow exceeds total cash outflows. Inflow is cash coming in, while outflow is cash leaving the business. In a business, sales represent cash inflows, while expenditure represents cash outflows.
In this case, the sales total to $1,600 while expenses are $1,490. The net cash flow is the difference between the inflows and the outflows. Here, the difference is a positive $110.
Answer:
Dealers profit comes from the spread primarily. Spread is the differential amount between buying and selling.
Explanation:
Let us assume the price of security X is USD 100 (last trade price)
A dealer will purchase this security at discounted price from the investor say USD 99 and will sell the same security in the market at USD 100, thus earning spread.
Further being market markers, dealers often use multiple strategies to prop up the price of particular security and earn gains on inventory held.
