Answer:
b. Merchandising companies generally have a longer operating cycle than service enterprises.
Explanation:
Merchandising store has a long run because they keep selling goods to customers and restocking them, they deal with tangible goods while services enterprise deals with consulting services and auditing services, they do not sell goods to customers.
Answer: c. $18,000
Explanation:
Provision for doubtful accounts estimate;
= 600,000 * 3%
= $18,000
This is the Percentage of sales method and it ignores the existing balance in the Provision for doubtful accounts using only the estimate provided.
<span>There are more political complications with determining and implementing fiscal policy.</span>
Answer: <u><em>Profitability index</em></u> is the financial method of analysis which will provide the information that the owner requests
This is an assessment technique inflicted to possible outlays. This splits the proposed capital flow by the planned capital outflow to find out the profitability of a project
<u><em>Therefore the correct option is (d).</em></u>
<span>The consumer price index would change in concert with the real value of the income that the consumer has. In this case, the nominal value is 80,000 with a real value of only 71,500. Taking these two values and dividing them gives a quotient of 1.118, which is rounded up to 1.12, multiplied by 100 to give a CPI of 112.</span>
