<span>Management by exception holds that only those issues that are significantly deviating from the normal course of action need to be looked at. If the deviations are minor or are likely due to random chance, then management does not need to worry about it at the time. None of the choices presented properly give this definition.</span>
Answer and Explanation:
The computation of the debt to asset ratio is shown below:
Debt to Assets Ratio = (Total Debts ÷ Total Assets) × 100
= $60,000 ÷ $66,000 × 100
= 90.91%
This debt to asset ratio represents that 90% is the liability corresponding to the assets this shows that it is more leverages and more risky for taking more loans. And the loan application would be rejected as the bank would feel that the debt to asset ratio is high leveraged and contains huge risk
I would go with C. Approach the Federal Trade Commission
Answer:
C. $52,100
Explanation:
Account Receivables On December 31, 2016,
= $53,800
Estimate of receivables that will not be collected is an indication of receivables gone bad.
Such receivables are usually written off the books by Crediting account receivables and debiting bad debit expense.
If it is only probable that the receivables may not be collected, the entries would be credit to allowance for bad debt and a debit to bad debt.
In this instance, the debt will not be collected hence
Debit bad debt expense $1,700
Credit Trade receivables $1,700
Being entries to recognize receivables that will not be collected.
Account receivables adjusted balance = $53,800 - $1,700
= $52,100