Answer:
B. shield his employees from having to make decisions about how the company operates.
Answer:
E. Bad debt expense can be estimated by the percent of sales method, the percent of accounts receivable method, or by the aging of accounts receivable method.
Explanation:
The bad debt is an expense that is to be shown on the debit side of the income statement. It refers to the amount which is not collectible by the company due to partie bankruptcy
It can be estimated by the following methods using the Generally accepeted accounting principles (GAAP)
1. percent of accounts receivable method,
2. percent of sales method
3. the aging of accounts receivable method
Hence, the correct option is E.
Answer:
$300
Explanation:
Data provided as per the question
Increase in volume = $400
Wage rate = $100
The computation of marginal revenue is shown below:-
Marginal revenue = Increase in volume - Wage rate
= $400 - $100
= $300
Therefore for computing the marginal revenue we simply deduct wage rate from increase in volume. So, the marginal revenue is $300.
Answer: A. Both treasury stock and paid in capital from treasury stock
Explanation:
When using the cost method, the stock is recorded at cost which means that the stock repurchased (Treasury Stock) is recorded at cost of buying it. If it is sold for a higher amount than it was bought for, the amount it was bought for will be credited from the Treasury account.
The remaining amount will be credited to the Additional Paid-In Capital account which is used to record variations between the amount equity was bought for versus the amount it was sold for.
Had the repurchased stock been sold for less, the Additional Paid In Capital Account would have been debited.
