Management is the big-picture process of making business run smoothly through effective planning, organizing, staffing, training, leading, and controlling the company.
Answer:
B. No effect on net income; no effect on total assets
Explanation:
When you write off bad debt, the journal entry is:
Dr Allowance for doubtful accounts XYZ
Cr Accounts receivable XYZ
This actually had no effect on the income statement, since the allowance account is already a contra asset account.
When the write off is reversed because the customer paid the debt, the journal entry is:
Dr Accounts receivable XYZ
Cr Allowance for doubtful accounts XYZ
Dr Cash XYZ
Cr Accounts receivable XYZ
Again, since the company is using the allowance method, there is no real effect on the income statement nor total assets in the balance sheet.
Answer:
The risk of Treasury bills is 0 so we need to buy a proportion of risky assets that its beta equals to 1 which is the market beta
1.76x=1
x=1/1.76
x=0.568
x=56.8%
We need to invest 56 percent of ours portfolio in risky stocks and 44 percent in treasury bills
(0.568*1.76)+*0.44*0)=
Explanation:
Answer: 40.7 years
Explanation:
You can use Excel to sold for this using the NPER function.
Rate = 10.2% / 12 months = 0.85%
Payment is $305 per month
Present value is $0
Future value is $2,200,000
Number of periods = 488.1979353
In years this is:
= 488.1979353 / 12
= 40.7 years
Answer:
increasing government spending by $4 billion.
Explanation:
A rightward shift of aggregate demand means that aggregate demand is increasing.
When the government increases spending, the effect on aggregate demand is given by ⇒ total change in spending x government spending multiplier
- total change in spending = $4 billion
- government spending multiplier = 1 / MPS = 1 / 0.1 = 10
effect on aggregate demand = $4 billion x 10 = $40 billion
