Answer: is permitted if results are similar to the allowance method
Explanation:
The direct write-off method is refered to as an accounting method whereby the uncollectible accounts receivable are being written off as bad debt. Here, the bad debts expense account will be debited while the accounts receivable will be credited.
The direct write-off method is permitted if results are similar to the allowance method. For the allowance method, it should be noted that an estimation of the bad debt future amount will be charged to the reserve account once the sale takes place.
Answer:
The answer is true
Explanation:
The law of comparative advantage describes how, under free trade, an agent will produce more of and consume less of a good for which they have a comparative advantage.
The statement above is TRUE.
Social mobility refers to the movement of individuals or families within or between social strata in a particular society. It means a change in social status relative to one's present location with a given society. Social mobility in US does not depend on where one start in the class system; one can come from the lowest class strata and become one of the richest individual and an individual from a very rich family can also end up as a p.auper. A lot of factors come to play in these situations.
Answer:
=> fraction of the portfolio that should be allocated to T-bills = 0.4482 = 44.82%.
=> fraction to equity = 0.5518 = 55.18%.
Explanation:
So, in this question or problem we are given the following parameters or data or information which are; that the utility function is U = E(r) – 0.5 × Aσ2 and the risk-aversion coefficient is A = 4.4.
The fraction of the portfolio that should be allocated to T-bills and its equivalent fraction to equity can be calculated by using the formula below;
The first step is to determine or Calculate the value of fraction to equity.
Hence, the fraction to equity = risk premium/(market standard deviation)^2 - risk aversion.
= 8.10% ÷ [(20.48%)^2 × 3.5 = 0.5518.
Therefore, the value for fraction of the portfolio that should be allocated to T-bills = 1 - fraction to equity = 1 - 0.5518 =0.4482 .
Answer:
Imagine that you have won $100 in the state lottery. You have a choice between spending the money on shopping now or putting it away in a
savings account for one year. You decide to spend the money now on shopping. Thus, you will lose the interest that you could have earned by
saving the money. The lost interest is the
<u><em> opportunity cost</em></u> cost of spending money now.
Explanation:
The opportunity cost is the price you pay for not choosing best second alternative when you make a decision. In this case the person has two options:
1. Spending the money
2. Save the money
Once the money is spending the opportunity costs is generated and it is measure by the interest rate lost for not keeping the money in a savings account that will generate an interest rate known as APY Annual Percentage Yield.
