Answer:
D) $8,040
Explanation:
<u>Credit Sales Method:</u>
Bad Debt Losses = 3% of Credit Sales
Bad Debt Losses = 0.03 x $588,000
Bad Debt Losses = $17,640
<u>Adjusted balance in the Allowance for Doubtful Accounts:</u>
Bad Debt Losses - (uncollectible accounts receivable - Allowance for Doubtful Accounts)
$17,640 - ($24,000 - $14,400)
$17,640 - $9,600
$8,040
Answer:
B. Collateral promise.
Explanation:
Collateral promise refers to a promise to pay the debt of another that is ancillary to an original promise. It is an undertaking which renders the promisor a guarantor or surety upon a debt owing by a third person who is primarily liable. It is not made for the benefit of the party making it.
Answer: Production orientation
Explanation: It refers to a strategy when the company focuses only to provide the best quality product in the market without taking into consideration the preference of the customers.
In the given case, Steel makers are focusing on making their business process the best in market so that they can gain a competitive advantage.
Thus, from the above we can conclude that the correct option is C.
That would be true in a true or false scenario. It's better to be safe than sorry - they can mess up your credit, and burn bridges for opportunity for you.
That's another reason why you should guard a social security number with your life and only give it when something's 100% authentic - they can steal your identity from those numbers!
Good luck, rockstar!
I hope you pass, and that this helps!
Answer:
Missing question "<em>If the interest rates increase by 50 basis points, What will be the percent change in price for the bond? Why?
"</em>
Modified Duration = Macaulay Duration / (1 + YTM)
Modified Duration = 7.2 / (1 + 10%)
Modified Duration = 7.2 / (1 + 10%)
Modified Duration = 6.55
% Change in Bond Price = - Modified Duration x Change in int rates
% Change in Bond Price = - 6.55 x 0.5%
% Change in Bond Price = - 3.27%
Thus, the Interest rates and bond prices are inversely related. Hence, increase in interest rates would lead to decline in bond prices.
