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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.

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A homeowner has a mortgage balance of $149,570.75. If the interest rate on the loan is 9.5% and the monthly payment is $1,303.55

nalin [4]

Answer:

Principal balance at the end of year 2 = 149,330.9079

Explanation:

Loan Amortization: A loan repayment method structured such that a series of equal periodic installments will be paid for certain number of periods to offset both the loan principal amount and the accrued interest.

We will use the following relationships:

Interest paid = Interest rate × loan balance

Principal paid = Monthly installment - Interest paid

Principal balance= loan balance - principal paid

Year 1

Interest paid = 9.5%/12 × 149,570.75 = 1,184.101

Principal paid in year 1 = 1,303.55 - 1,184.101 = 119.448

Principal balance = 149,570.75 - 119.448= 149,451.3018

Year 2

Interest paid = interest rate × loan balance in year 1 = 1183.156

Interest paid = 9.5%/12 × 149,451.3018 = 1183.156

Principal paid = 1,303.55 - 1183.156139 = 120.393

Principal balance at the end of year 2= Principal balance in year 1 - Principal paid in year 2

= 149,451.3018 - 120.393861 = 149330.9079

Principal balance at the end of year 2 = 149,330.90

8 0

3 years ago

scenarios should be realistic detailed and based in the workplace you must also explain the importance of each behavior and its

Maslowich

By challenging your predictions of the future and basing your plans and actions on the outcomes that are most likely to occur, you may increase the likelihood that your choices will be sound even if the situation changes.

Case Study Analysis

By testing your future assumptions, scenario analysis can assist you in planning your business strategy or in making smarter judgments.

You can identify potential hazards and make plans for how to address or lessen their effects by investigating a variety of alternative scenarios.

Follow these five steps to use the tool:

Describe the problem.

assemble data.

Distinguish certainty from uncertainty.

Construct situations.

Make use of the scenarios when planning.

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3 0

2 years ago

Activity-based costing allocates selling and administrative expenses a.based on sales volume in dollars. b.in accordance with GA

ollegr [7]

Based on how each product consumes activities, activity-based costing allocates selling and administrative expenses. Hence, Option D is the correct statement.

<h3>What do you understand by Activity-based costing?</h3>

A costing technique that identifies activities in an organization and assigns the cost of every activity to all services and products in line with the real consumption via way of means of each is referred to as Activity-based costing.

This version of the costing technique assigns greater indirect costs into direct fees as compared to traditional costing.

Hence, Based on how each product consumes activities, Activity-based costing allocates selling and administrative expenses. Option D is the correct statement.

learn more about Activity-based costing:

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5 0

2 years ago

Which of the following considerations can sometimes override consequences when comparing and weighing alternatives for ethical d

adelina 88 [10]

Answer:

The correct answer is B

Explanation:

Principle is the term which is defined as the scientific law or theorem which has various special applications.

And sometimes matters of duties, principles or rights could countermand or override the consequences when weighing and comparing the alternatives related to the ethical decisions making.

For example, how an employee weighs and compares the alternatives for the ethical decision making might ground or depend on the duties or responsibilities linked with the position of the employee in the company.

3 0

3 years ago

Which ONE of the following causes OWNERS' EQUTY to INCREASE?a Expensesb Dividendsc Borrowingd Revenues

erik [133]

Answer:

Revenues

Explanation:

Revenues represent an inflow into the company which contribute towards retained earnings and thus Equity. Expenses reduce retained earnings as do dividends.

Borrowing will increase the amount of money in the cash account which can then be used to buy more assets. It does not increase equity, but simply increases the company's liabilities.

Therefore the correct answer is revenues.

5 0

3 years ago