Allowance method of accounting for bad debts
.
Option - B
<u>Explanation:
</u>
The financial accounting term payments method refers to a system that is unplayable and records a bad debt expenditure estimate in the same period of accounting as the purchase. The deduction is used to adjust the cash flow accounts receivable.
The payment method is a better solution to the direct payment method because it is in line with the matching accounting theory.
Bad debts expenses are recognized soon since bad debts are likely and can be estimated to a fairly precise degree so that they meet the criteria necessary to recognize predicated losses and recognize the costs of bad debts.
Answer:
An art
Explanation:
An art is a blank is a statement used to communicate ones feelings in a nonconfrontational manner.
3. Short surveys
Explanation:
Financial statement analysis is the method of analyzing the economic structure and reviewing the future of a business to earn income.
Types of Financial statement analysis are as follows:
- Fundamental analysis
- Horizontal analysis
- Vertical analysis
- Ratio analysis
- DuPont analysis
- Dividend discount model
The 3rd option is given as Short surveys which is a non-financial method of analysis.
Answer:
PV= $1,311.17
Explanation:
Giving the following information:
Future Value (FV)= $5,000
Number of periods (n)= 25 years
Interest rate (i)= 5.5% compounded annually
T<u>o calculate the present value (PV), we need to use the following formula:</u>
<u></u>
PV= FV / (1+i)^n
PV= 5,000 / 1.055^25
PV= $1,311.17
Answer:
Explanation:
When the Peso depreciates by 30%, the firm can save money on the costs of production as the inputs would be less costly but the market for the firm in Mexico would be affected negatively as the depreciation of the peso would mean that now, the consumer can buy more goods with the same amount of money which will increase the demand. The loans that the subsidiary has taken would also be affected as it has to pay more for the collateral.
If the company reduces the inventory and stock the foreign receivables before the depreciation occurs to minimize the loss. Before the depreciation happens, the firm can convert the pesos denomination to the dollar so that its value doesn't fall.