Answer:
Explanation:
Failure of credit customers to pay their bills is considered a bad debt in Accounting. This is recored as a bad debt expense in journal entries in the <em>period when the credit sale occurred</em>. This ensures that these bad debt expense matches the revenues earned during that period. In a company's financial statements, bad debt expense is recorded in the Income statement as <em>selling expenses.</em>
Answer:
Not produce any additional roast beef sandwich
Explanation:
Allocative efficiency is reached when the marginal benefit or producing one more unit of output equals the marginal cost.
Allocative efficiency - Marginal Benefit (MB) = Marginal Cost (MC)
For this local deli, producing one more roast beef sandwich has a marginal benefit of $2, and a marginal cost of $3, we have:
MB = MC
$2 = $3
For the local deli, in this situation there is no allocative efficiency because the marginal cost is higher than the marginal benefit, therefore, the firm should not produce any additional roast beef sandwiches.
Answer:
B
Explanation:
The Internal Rate of Return (IRR) is the profitability or the ability to generate revenues of the money that remains invested during the life of a proyect. It is also known as the discount rate or cost rate that makes the Net Present Value (NPV) equal to cero. When the NPV is greater than cero, then the proyect creates value ( it is attractive to investors) if it is less than cero, then the proyect destroys value and investors are going to loose money. If the NPV is equal to cero, then investors recover their investment but they do not obtain gains nor losses. The minimum rate of return is the one in which at least investors obtain the same amount ( in present value) of their investment; that is the internal rate of return (IRR).
