Answer:
violates the matching principle
Explanation:
The direct write-off method is an accounting method for recognizing bad debts expense arising from credit sales when individual invoices has been identified as uncollectible.
In Accounting, one of the weaknesses of the direct write-off method is that it violates the matching principle.
The direct write-off method is a method of accounting for uncollectible receivables.
The marginal benefit from the activity is equal to the marginal cost
Answer:
First Big Bank can file a lawsuit.
Explanation:
Debbie took the loan when he has the job and agreed to refund the loan or borrowed money. Unfortunate circumstances lead to the loss of his job resulting in the stoppage of loan repayment. Since Debbie did not make any crime so it will not come under criminal law but the bank can file a lawsuit against Debbie and he will be liable to pay a fine and penalties.
Answer:
25 percent.
Explanation:
Given that,
Net Income =$200,000
Paid dividends to common stockholders = $50,000
Weighted average number of shares outstanding in 2022 = 2,000 shares
Selling price of common stock = $80 per share
Dividend pay-out ratio:
= (Dividend paid to Common Stockholders ÷ Net Income) × 100
= ($50,000 ÷ $200,000) × 100
= 0.25 × 100
= 25%
Therefore, the company’s payout ratio for 2022 is 25 percent.
