Answer:
The correct answer is A
Explanation:
The journal entry to be posted to write off the balance of uncollectible is as:
Allowance for Doubtful Accounts A/c..........................Dr $200
Accounts Receivable A/c.......................................Cr $200
As the allowance method is used so the accounts receivable account will be credited and the allowance for doubtful accounts is debited with the amount which is recovered that is $200.
Allowance method is generally refer to one of the ways for reporting the uncollectible or bad debt expense which results from a company selling the goods on credit.
Answer:
10.23%
Explanation:
Formula for computation of equivalent taxable yield is r = rm/1-t. Where the tax rate is t, rm is Yield on municipal bond and r is Tax equivalent yield
r = rm/1-t
r = 6.75% / 1 - 34%
r = 6.75% / 0.66%
r = 10.22727272727273%
r = 10.23%
So, the equivalent taxable yield to a taxpayer in a combined federal plus state 34% tax bracket is 10.23%.
Answer: A company can only record a liability when it knows whom to pay, when to pay, and how much to pay
Explanation:
A liability is simply defined as the amount that a particular company owes. Liabilities consist of loans, accrued expenses, defered revenue, and accounts payable.
We should note that liabilities can involve uncertainty in whom to pay. Also, a company can have an obligation of a known amount to a known creditor, but not know when it must be paid.
Based on the options given in the question, the answer will be "a company can only record a liability when it knows whom to pay, when to pay, and how much to pay".
Answer:
b. oil prices increased faster than real GDP, but real GDP still grew at a healthy pace.
Explanation:
In this example, we compare the annual price of oil and the annual increase in GDP. When we look at the two, we can see that oil prices increased faster than real GDP. Nevertheless, we can also see that GDP still grew at a healthy pace.
GDP refers to Gross Domestic Product. This concept describes the monetary value of all good and services produced within a country's borders in a certain time period. GDP does not describe all the specific economic conditions of a country. However, it is still a useful measure for politicians and researchers in order to estimate the relative health of a country's economy.
