Answer:
d. The higher the risk, the lower the possible investment.
Explanation:
With regards to speculation, hazard can be characterized as the changeability of return. the contrast between real result and expected result can be called as hazard. In the given model, Sandy think about that there is a positive connection between the likelihood of hazard and returns. for example on the off chance that there is high hazard, the likelihood of getting returns is high. in the event that there is less hazard, the likelihood of getting returns is low.
Right now, likes to go with if the higher the hazard, the lower the potential ventures, in light of the fact that the inconstancy of profits is high. Means the financial specialist could conceivably get the profits, consequently they may like to go with certain and ensured returns than dubious more significant yields. In the region of ventures it is a typical inquiry to all, some may go with higher the hazard the lower the conceivable speculation.
Henceforth, the appropriate response is option D.
In the event that an announcement is there that the higher the hazard, the bigger the potential returns, it doesn't imply that the speculator gets more significant yields with his ventures. the odds are there to get more significant yields simultaneously there are a few issues moreover.
Jasper's entry to record the collection of the note and interest at maturity should be:
Debit Cash Account 44,990
Credit Interest Income $990
Credit Notes Receivable $43,000
The amount collected is:
Cash collected
= $44,000 Amount lend + Interest Income
And
Interest Income
= Amount lend * Interest Percent * For the days / 360
= $44,000 * 9% * 90 / 360
= $990
Now putting the interest income value in the above equation, we have:
Cash collected
= $44,000 Amount lend + $990
= $44,990
So the cash is increase by $44,990 interest income increased is by $990 and the Note receivable is at amount issued which has been decreased by $44,000.
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Answer:
Net income increase - $4,890
Explanation:
The computation of the effect on net income is shown below:
= Number of pounds of inferior product × (standard price for the materials - inferior product price per pound)
= 3,000 pounds × ($13 - $11.37)
= 3,000 pounds × $1.63
= $4,890 increase
For determining the effect we took the difference of the prices and then multiply it with the number of pounds of the inferior product
Answer and Explanation:
The Journal entry is shown below:-
a. Bad Debt Expense Dr, $36,800 ($40,000 – $3,200)
To Allowance for Doubtful Accounts $36,800
(Being the bad debt expense is recorded)
For recording this we debited the bad debt expense as it increased the expenses and at the same time it reduced the assets so the allowance for doubtful accounts is credited
b. Bad Debt Expense Dr, $40,730 ($40,000 + $730)
To Allowance for Doubtful Accounts $40,730
For recording this we debited the bad debt expense as it increased the expenses and at the same time it reduced the assets so the allowance for doubtful accounts is credited
It is true that this change would probably be a good move, as it would increase the ROE from 7.5% to 13.5%.
<u>Explanation:</u>
Equity multiplier is calculated by dividing the total assets of a company to shareholder’s equity of an organization. If a company has not raised any debt, then such company would be having equity multiplier equal to 1. t is a leverage ratio.
Return on equity is another financial measure to calculate the return. It is calculated by dividing the net income of a company to the shareholder’s equity. It directly shows the amount that a company is earning on its money invested by the equity shareholders.
