When an alternative decision rule disagrees with the net present value (npv), the npv should be followed?

He allowance method of estimating uncollectible accounts receivable based on an analysis of receivables shows that $640 of accou

dsp73

Answer: The adjusting entry at the end of the year will include a credit to Allowance for Doubtful Accounts in the amount of: $750

Given:

Accounts receivable = $640

Allowance for Doubtful Accounts = $110

Therefore, the correct option is (c).

4 0

3 years ago

When group investors become aware of overseas investment opportunities and are willing to diversify their portfolios internation

sammy [17]

Answer:

they benefit from an expanded opportunity set.

Explanation:

As most of the business organizations focused on grabbing the investment opportunities which leads to diversify their business in terms of expanding the business in various locations, maximize the market share etc

This can be done with the help of opportunity set i.e. to expanded through which the firm could get the benefit of it

Hence, this would be the answer

3 0

3 years ago

Stellar Enterprises made the following entry on December 31, 2020. Interest Expense 6,490 Interest Payable 6,490 (To record inte

cupoosta [38]

Answer:

Interest Receivable 6,490 debit

Interest Revenue 6,490 credit

(To record interest revenue from Stellar Enterprises loan)

Explanation:

The banks accounting will reflect the accrued interest as well. From their perpective, the interest are revenue as they are the lender of the loan.

It will recognize the interest revenue from the accounting period

and will declare the interest receivable for the same amount.

From this we can deduct:

the payable from one entity is a receivable for another entry.

the interest expense from one firm will be interest revenue for another.

7 0

3 years ago

For a closed economy, GDP is $11 trillion, consumption is $7 trillion, taxes are $2.5 trillion and the government runs a surplus

alina1380 [7]

Answer:

A. $1.5 trillion and $2.5 trillion, respectively

Explanation:

Given that

GDP = 11 Trillion

Tax = 2.5trillion

C = 7 trillion

Recall that

Private Savings = Disposable Income - Consumption

Disposable income = GDP - Tax

= 11 - 2.5

= 8.5

Private savings = 8.5 - 7

= 1.5 trillion.

National Savings = Private Savings + Budget balance

Given that

Budget balance = 1 trillion

Therefore,

National Savings = 1.5 + 1

= 2.5 trillion.

6 0

3 years ago

Joyce’s office building was destroyed in a fire (adjusted basis of $350,000; fair market value of $400,000). Of the insurance pr

professor190 [17]

Answer:

$10,000 gain

Explanation:

The computation of recognized loss or gain is shown below:

= Insurance proceeds amount - adjusted basis

= $360,000 - $350,000

= $10,000 gain

So, it would have a recognized gain of $10,000 by considering the amount of insurance proceed and adjusted basis. We ignore all other information which is given in the question

3 0

2 years ago