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erica [24]
3 years ago
10

Marmol Corporation uses the allowance method for bad debts. During year 1, Marmol charged $30,000 to bad debt expense, and wrote

off $25,200 of uncollectible accounts receivable. These transactions resulted in a decrease in working capital of:
a. $0
b. $4,800
c. $25,200
d. $30,000
Business
1 answer:
4vir4ik [10]3 years ago
4 0

Answer: Option (d)

Explanation:

Under this case the write off will be as follow:

                                                                      Debit         Credit

Allowance for doubtful accounts                25,200  

Accounts receivables                                                     25,200

Here, in this case the Allowance for the doubtful accounts and Accounts receivables are further decreased as the outcome of the transaction made. Thus, there will be no further effect on working capital. Therefore the $30,000 that is bad debt would then be stated as the credit to allowance account. This will then decrease the working capital by $30,000.

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Last year mike bought 100 shares of dallas corporation common stock for $53 per share. during the year he received dividends of
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Mike brought 100 shares costing $53 each.
Total costs of shares= 100*53
=$5300

He got dividends of $1.45 per share. A dividend is money that is earnt back from a share.
Total dividend amount = 1.45*100
=$145

I'm assuming that Mike sold his shares at the end of the year. He sells for $60 each.
Total sales amount=60*100
=$6000

The rate of return in this instance can be defined as the amount of money made back from a share.

Rate of return= total earnings/ costs

Total costs= $5300
Total earnings=$6145

6145/5300=1.1594
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4 0
3 years ago
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WARRIOR [948]

Answer:

Management of a company is responsible for integrity and objectivity of financial statements. It is management's responsibility to comply with all applicable accounting standards while preparing financial statements.

Explanation:

There should be strict internal controls in a company. A company management is responsible to comply with all laws, and prepare financial standards free from errors. There should be no window dressing and information presented should be reliable. A company management is also responsible to maintain effective internal control system.

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2 years ago
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It should be noted that  duties of the board of directors involve reviewing the organization's financial objectives and major strategies in organization.

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They provide advice to top management, and reviewing systems to ensure compliance with laws and are governing body .

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