Answer:
Bonds
Explanation:
Bonds are financial instruments that are used to obtain funding from the bond holders. It is a debt security that is issued by a government or corporation to investors.
When investors buy bonds the funds are used by governments for its operations and various projects. Interest is paid on the bonds.
Bonds can be municipal bonds or corporate bonds.
Unlike shares bonds does not grant the holder an equity or ownership stake in the company, rather it grants a creditor stake.
Answer:
1. $67,500
2. $69,500
3. $69,500
Explanation:
1. The computation of bad debt expense is shown below:-
Bad debt expense = Credit sales × Debt percentage
= $4,500,000 × 1.5%
= $67,500
2. The computation of receivable written off is shown below:-
receivable written off = Allowance Beginning balance + bad debt expense - Allowance ending balance
= $42,000 + $67,500 - $40,000
= $69,500
3. The computation of bad debt expense be for 2013 is shown below:-
= receivable written off
= $69,500
Answer:
No, the investment is not increased in any accounting method so it must not be increased.
Explanation:
The reason is that in the cost method, the investment remains the same because the return is treated as income.
In the held for trading, the return received is treated as decrease in the investment because the dividend received decreases the fair value of the investment. Similarly in the equity method the dividend received is treated as cash withdrawal or we can say that dividend received decreases the fair value of the investment.
Answer:
a. is liable to purchasers as a manufacturer/seller of toys.
Explanation:
Mattel is the producer of the toys even if it was it's manufacturer in China that made the toys. Using lead paint can lead to poisoning of children. So the toys produced can be considered to be harmful and defective.
The manufacturer of a product has a product liability on every good delivered to the consumer. Product liability is that borne by the manufacturer of a good for putting defective product in the hand of the consumer.
So for any damage or health issues that come up as a result of use of the toys, Mattel is liable.
Answer:
Stockholder wealth growth should continuously be supposed of long term goal. It is in notice of shareholder or depositor that his prosperity continues to grow with smallest risk. Action which keeps stock at 20$ for numerous year and then increased to 40$ in year 5 is desirable as the wealth of the stockholder increases.
Sometime company capitalize in building dimensions so that it can yield more units of its product thus growing the sale. When the corporation is doing capex, stock price will remain stationary and as soon as its capex ends stock price will rise at fast pace.
