Answer:
B. Risk of accounting loss: $230,000; Off-balance sheet risk: $0
Explanation:
Accounting loss occurs due to credit provided and the market risk associated with it, already the company has provided for $20,000 un-collectible debts, now the company can have maximum of $250,000 - $20,000 = $230,000 of loss.
Talking about off-balance sheet loss, it will be zero, as off-balance sheet loss occurs only when there is some statutory or non-statutory obligation attached to any of the assets, which is not stated in accounts. Since no obligation is attached for receiving such amount from accounts receivables.
Thus, correct answer is
B. Risk of accounting loss: $230,000; Off-balance sheet risk: $0
The net income or net loss is calculated on the
statement of owner’s equity.
Answer:
A. True
Explanation:
Manager need to employ their negotiating skill in different areas.
And the subject of negotiation written are all correct
