The information that a manager or an owner can get by having an insight into the accounting information about accounts receivable and bad debts is how much amount of goods are sold to the consumers on credit and how much is the amount that the consumers are not able to pay for the goods that they had bought.
It will also help to decide how much of a provision is required to be kept in advance for bad debts. If a company has a high amount of accounts receivable but a small number of bad debts then it shows that the company is efficient in doing the credit sales and gives goods on credit only to those consumers who can give the debt back.
The manager or the owner can decide that they can do more credit sales as there is less chance of it becoming worse. If a company has a high amount of accounts receivable and a high amount of bad debts then it shows that the company is inefficient in doing the credit sales and gives goods on credit to consumers without a surety of getting the debt back.
The manager or the owner can decide that they cannot do more credit sales as there is more chance of it becoming worse.
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Answer:
Correct option is B Yes and Yes
Yes - Compensating shall be reported, And Restricted shall also be reported.
Explanation:
Compensating balance is the minimum balance to be maintained in the company's bank account as this is used by bank for offsetting loan, and used by company to set up the loan amount.
Restricted balance is a choice made by the company to not use the funds and use it later for company's growth or future projected, but still since it cannot be used it shall also be reported accordingly.
Therefore the company has the need to report such restricted balance also and compensating balance has to be reported as well.
Therefore correct option is B
Yes - Compensating shall be reported, And Restricted shall also be reported.
Answer:
The false statement is letter "A": We say a portfolio is an efficient portfolio whenever it is possible to find another portfolio that is better in terms of both expected return and volatility.
Explanation:
An effective portfolio is a portfolio with the highest expected revenue for a given risk level or a portfolio with the lowest risk level for a given expected revenue. When the portfolio has reached either one of the two points it is said that it has reached its efficient frontier.
In that case, option "A" is false since the portfolio efficiency has nothing to do with the similarity it may have with another one.
Answer: E) above the market wage, causing labor demand to be less than labor supply.
Explanation:
Minimum wage simply refers to the lowest wage that employers can pay their workers. Minimum wage is a form of price floor which means that it's typically higher than the equilibrium or market wage.
In this case, since it's higher than the market wage, there'll be an increase in the supply of labor as those that are unemployed will be willing to work duw to the increase in the wage rate.
On the other hand, there'll be a reduction in the demand for labor as employers typically will want to reduce cost and won't be interested in employing more workers.
Therefore, the correct option is E
Answer:
So yield to maturity will be 11.1 %
Explanation:
We have given final value FV = $1000
Current price = $900
Time is given t = 1 year
We have to find the rate of interest
Future value is given by
, here A is future value and P is current price
So 
r = 11.1 %
