All categories

3 years ago

If there is a substantial increase in bad debts, what might this mean?

1 answer:

6 0

In the case of lending money (for a vehicle or a mortgage for example), this may be an indication of irresponsible lending practices. If there is a substantial increase in bad debts, it means that less creditworthy borrowers (borrowers who are less capable or likely to repay) are obtaining credit too easily.

In the case of bad accounts receivable for a company, there are similar implications, but it also could mean that the inventory that a company is selling is not being sold quickly enough by the retailer. One example could be ToysRUs having overdue accounts due to its partnered toy makers, such as Hasbro. It could be a sign that the demand for the product is not sufficiently high to sell the full amount of purchased inventory, at least when being sold through that retailer.

You might be interested in

Chloe enjoys her math classes and show would like to find a career that will allow her to continue to use her math skills which

Morgarella [4.7K]

Answer: definatly B

Explanation:

8 0

3 years ago

Read 2 more answers

Meitneria and Seaboria specialize in the production of heavy machinery and textiles respectively. While Meitneria doesn't produc

siniylev [52]

Answer:

a. Meitneria will import textiles from Seaboria and export heavy machinery to it.

Explanation:

The Heckscher-Ohlin theory states that a country has to export what it can produce efficiently according to the factors of production that the country has and import the products that the country is not able to manufacture efficiently. According to this, the answer is that in this situation, according to the Heckscher-Ohlin theory Meitneria will import textiles from Seaboria and export heavy machinery to it as Meitneria doesn't produce textiles which forces the country to import them and they specialize on heavy machinery which allows them to export it to Seaboria as this country doesn't have the technology to manufacture it.

4 0

3 years ago

Which of the following is true about the studies reported by Norton, Mochon, and Ariely (2012)? (Answer: Labor leads to more lov

shutvik [7]

Answer:

Labor leads to more love when participants successfully completed the task.

Explanation:

The answer is already provided in the question.

3 0

3 years ago

A group of middle school students wants to raise money to help build a new school track. They decided to sell donuts before scho

never [62]

Answer:

25 cent/donuts

Explanation:

Demand function have these two points (275, 0), (175, 25)

Demand function equation:

y - 25 = $\frac{25 - 0}{175-275}$ (x-175)

-100y + 2500 = (x - 175)

-4y + 100 = x - 175

x + 4y = 100 + 175

x + 4y = 275....................equ 1

Similarly Supply function have these point (150,0), (200, 50)

Supply function equation:

y - 50 = $\frac{50 - 0}{200-150}$ (x- 200)

50y - 2500 = x - 200

y - 50 = x - 200

x - y = 200 - 150

x - y = 150

By equation 1 & 2

x + 4y = 275

x - y = 150 ==> x = 150+y

So from equ 1 => x + 4y = 275

=> 150+y+4y = 275

=> 150+5y = 275

=> 5y = 275 - 150

=> 5y = 125

=> y = 25

So, the price that the students should charge per donut so that there is neither a surplus nor a shortage of donuts is 25 cent/donuts

4 0

3 years ago

The company's adjusted trial balance as follows includes the following accounts balances: Cash, $15,000; Equipment, $85,000; Acc

Leto [7]

Answer:

Dr. Cr.

Sales, $56,000

Income Summary $56,000

Dr. Cr.

Income Summary $52,500

Sales Returns and Allowances $3,000

Sales Discounts, $1,500

Depreciation Expense, $25,000

Salaries Expense, $23,000

Explanation:

Cash, Equipment, Accumulated Depreciation, Accounts Payable, Owner Capital and Owner Withdrawals are all permanent accounts. These accounts will not close and do not need any closing entry.

7 0

3 years ago