A competitive market economy with low barriers to entry affords an entrepreneur with
the opportunity to bring new and different products and services to the market.
Explanation:
i hope you have find your answer
Answer:
Option (C) is correct.
Explanation:
Given that,
No. of shares = 200,000
Market value per share = $20 each
Tax rate = 34%
Debt amount = $1,000,000
Market value of firm:
= Market value of equity + (Tax rate × Debt)
= (No. of shares × market value per share) + (Tax rate × Debt amount)
= (200,000 × $20) + (0.34 × $1,000,000)
= $4,000,000 + $340,000
= $4,340,000
= $4.340 million
The firm be worth after adding the debt is $4.340 million.
Answer:
(1) Recognition of revenue on account.
The accounting record a sale as usual.
(2) Collection of cash from accounts receivable.
The accounting records the accrued revenues as usual.
(3) Recognition of uncollectible accounts expense through a year-end adjusting entry.
Based on experience or other actors, the company considers a portion of their sales revenecue (or assets i nthe balance heet) to be ficticional.
(4) Write-off of uncollectible accounts.
The accouning simply decrease the acc receivalues and then, it proceeds with the credited agains the allowance.
Explanation:
