Answer:
Read the explanation below
Explanation:
Dollar-cost averaging is based on the belief that prices of stock fluctuate around a normal level. Without this notion, it will not be possible to determine what can be seen as high or low now compared to the future.
The benefits of Dollar Cost Averaging attracts investors to employ. These benefits include:
1. It contributes on a regular basis to portfolios of investment.
2. The problem of market timing is eliminated especially for investors do not have time to track the market regularly or who lack the understanding of the market.
3. The cost basis to consumers on stocks whose values decline are is reduced.
4. It is easy to set up and not expensive especially for investors with no huge amount of money to invest. Like the example in the question, it easier for a salary earner to invest $500 monthly than investing $5,000 in a day.
Despite these advantages, dollar-cost averaging has its own disadvantages, and these include:
1. It has been found out in different studies that investor that can time the market correctly and invest a lump sum amount receive a higher return in the long run than what dollar-cost averaging can fetch.
2. The transaction costs paid by the investors significantly increased because of more number of different transactions when brokerage fee is high.
I wish you the best.
Answer:
An alternative is also known as Uncollectible accounts expense
Explanation:
A bad debt expense is recognized when a receivable is no longer collectible because a customer is unable to fulfill their obligation to pay an outstanding debt due to bankruptcy or other financial problems.
Bad debt expenses are generally classified as a sales and general administrative expense and are found on the income statement. Recognizing bad debts leads to an offsetting reduction to accounts receivable on the balance sheet.
<u>Bad debt expense is also known as Uncollectible accounts expense</u>
Answer:
Balance Sheet / Statement of Financial position is used to measure the current financial position of the company.
Explanation:
Balance Sheet / Statement of Financial position is used to measure the current financial position of the company. It shows the value of assets liabilities and capital invested in the company. It also provides the net financial value of the company after paying all the liabilities. On the other hand the Income statement or Statement of Financial performance shows the performance of the company in a specified period of time.
