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Maslowich
3 years ago
11

Under the allowance method of accounting for uncollectible accounts, a. the cash realizable value of accounts receivable is grea

ter before an account is written off than after it is written off. b. Bad Debts Expense is debited when a specific account is written off as uncollectible. c. the cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off. d. Allowance for Doubtful Accounts is closed each year to Income Summary.
Business
1 answer:
pentagon [3]3 years ago
8 0

Answer:

c. the cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off.

Explanation:

Under the allowance method of accounting for uncollectible accounts, the cash realizable value of accounts receivable in the balance sheet is the same before and after an account is written off and bad debt expenses is debited.

This means that in the period in which an account previously written off is collected, the income is unaffected.

Also, under the allowance method of accounting, total assets will remain unchanged when a particular account is being written off.

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Sheen Awnings reported net income of $90 million. Included in that number were depreciation expense of $3 million and a loss on
Serggg [28]

Answer:

The Sheen’s cash flows from operating activities is $95 million

Explanation:

Cash flows from operating activities :

The cash flow from operating activities includes all those activities which are of short term period. Like changes in working capital or we can say increase in currents assets or decrease in current assets or increase/decrease in current liabilities.

The increase in current liabilities increase the cash balance, hence it is added and decrease in current liabilities decrease the cash balance. But in the case of current asset, it is opposite.

The depreciation expense and loss on sale of equipment is added. So, we take them in the computation part.

The cash flow from operating activities is equals to

= Net income + depreciation expenses + loss on sale of equipment - increase in accounts receivable +  increase in accounts payable - increase in inventory

= $90 + $3 + $2 - $1 + $4 - $3

= $95 million

Hence, the Sheen’s cash flows from operating activities is $95 million

8 0
3 years ago
Burke Company purchases land for $100,000 cash. Burke assumes $2,500 in delinquent property taxes due on the land as part of the
Natali [406]

Answer: $105700

Explanation:

The amount that'll be paid as the cost of the land will be calculated as:

Land purchase = $100,000

Add: Property tax = $2500

Add: Fees = $1000

Add: Grading = $2200

Total = $105700

Therefore, the amount that'll be paid as the cost of the land will be $105700

8 0
2 years ago
"An expenditure made in connection with a machine being used by a company to produce inventory should be expensed immediately if
Ipatiy [6.2K]

Answer:

True

Explanation:

Efficiency related expenditures are more closely with day-to-day servicing of the machine. Such an expenditure just maintains machine's capacity to save the future economic benefits rather than improve its capacity.

4 0
3 years ago
A person buys X in one market and combines it with Y purchased in another market. The combination of X and Y gives Z, which the
Sindrei [870]

Answer:

arbitration

Explanation:

Arbitration occurs when the price of a security or a commodity varies significantly between different markets. For example, I purchase gold in the United Kingdom at a lower price than in the United States, and I bring it to the United States and make a profit. Arbitration opportunities result from market inefficiencies and a lack of a single price.

8 0
3 years ago
How does Wanda's strategy of being a high-quality provider take advantage of the shifts in consumer demand for healthy dog treat
Katen [24]

Answer:

In the description section underneath the overview per the particular context is illustrated.

Explanation:

  • Wanda's philosophy about becoming a distributer of enhance performance resulted in increased market demand due to consumer perception that her goods are stronger and therefore more advantageous.
  • This contributes to consumption growth, moving the consumer surplus towards Wanda's goods to the right, contributing towards increased costs.
  • One more scenario maybe though in the immediate future, her Wanda commodities demonstrate no positive effects, resulting throughout a decline in terms of trade.

Throughout this situation, Wanda might answer by genuinely changing the productivity of the latter's goods including displaying a certain clinical significance to obtain a competitive advantage for customers.

7 0
2 years ago
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