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iren [92.7K]
3 years ago
8

Mega Loan Company has very stringent credit requirements and, accordingly, has negligible losses from uncollectible accounts. Th

e company's independent accountants did not protest when, contrary to GAAP, the company recorded bad debt expense only when specific accounts were determined to be uncollectible, rather than use an allowance for uncollectible accounts.
The concept demonstrated is:(A) Materiality. Correct(B) Cost-effectiveness.(C) Faithful representation.(D) Comparability.
Business
1 answer:
AfilCa [17]3 years ago
6 0

Answer: The correct answer is "(A) Materiality.".

Explanation: The concept demonstrated is Materiality because by having a mechanism for preventing bad accounts through their strict requirements, they only recorded bad accounts when they actually existed, instead of making a provision.

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Because of the relatively high interest rates, most consumers attempt to pay off their credit card bills promptly. However, this
telo118 [61]

Answer:

a) Proportion = 41.3%

b) Proportion = 9.18%

c) Proportion = 13.35%

d) Interest payment = $37.28

Explanation:

We have normal distribution with mean = 29 and standard deviation = 9

a) The proportion of the bank’s Visa cardholders pay more than $31 in interest is:

P(X > 31) = (\frac{X-29}{9}>\frac{31 -29}{9}) = P (Z > 0.22) = 1 - P (Z ≤ 0.22) =  

1 - 0.58706 = 0.41294 = 41.3%

The proportion of the bank's Visa cardholders pay more than 31 dollars in interest is 41.3%.

b) The proportion of the bank’s Visa cardholders pay more than $31 in interest is:

P(X > 41) = (\frac{X-29}{9}>\frac{41 -29}{9}) = P (Z > 1.33) = 1 - P (Z ≤ 1.33) =  

1 - 0.90824 = 0.09176 = 9.176% ≈ 9.18%

The proportion of the bank's Visa cardholders pay more than 31 dollars in interest is 9.18%.

c) The proportion of the bank’s Visa cardholders pay more than $31 in interest is:

P(X > 19) = (\frac{X-29}{9}>\frac{19 -29}{9}) = P (Z < -1.11) = 1 - P(Z ≤ -1.11)) =0.13350 = 13.35%

The proportion of the bank's Visa cardholders that paid less than 19 dollars in interest is 13.35%.

d) Let's suppose this amount of payment is Y:

Therefore P(X > Y) = 0.18

so P(X < Y) = 0.82

Utilizing standard normal approximation

P(X ≤ Y) = (\frac{X-29}{9}\leq \frac{Y -29}{9}) = P (Z ≤ \frac{Y-29}{9})  =  0.82

Form the standard normal table we find that \frac{Y-29}{9} = 0.92

Therefore,

Y - 29 = 9×0.92

Y - 29 = 8.28

Y = 8.28 + 29 = 37.28

Therefore $37.28 of interest payment is exceeded by only 18% of the bank's Visa cardholders.

3 0
3 years ago
If any dispute between the parties arises regarding the deposited escrow money, the sponsoring broker should?
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If there is any dispute between the parties arises regarding the deposit of Escrow money, the sponsoring broker should not release the money without a written release from both parties or both parties' assigned agents.

In the event a dispute arises over whether or not the earnest cash should be again (for instance, if the seller argues that the purchaser did not notify the seller in a well-timed manner of the cause to return out of the settlement), the escrow holder will hold to keep the earnest money till the dispute is resolved.

The two important factors for a legitimate sale escrow are a binding agreement/agreement between buyer and seller and the conditional shipping to an impartial third party of something of fee, as described, which generally consists of written gadgets of conveyance (provide deed) or encumbrance.

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Which industry accounts for about 80 percent of world trade?
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Explanation:

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THE CORRECT IS ANSWER IS WITHOUT A DOUBT b - Extinguished
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the life isnurance policy in which dealth benefits last a lifetime but premiums are all paid after a specified time period is an
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The life insurance policy in which death benefits last a lifetime but premiums are all paid after a specified time period is a limited-pay whole life policy.

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