1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nataly_w [17]
4 years ago
5

One of the weaknesses of the direct write-off method is that it A. understates accounts receivable on the balance sheetB. violat

es the matching principleC. is too difficult to use for many companiesD. is based on estimates
Business
1 answer:
Sauron [17]4 years ago
4 0

Answer:

B. violates the matching principle

Explanation:

The direct write-off method makes an accounting period take the bad debt expense for a sale which occur in a previous period. Therefore this expense was deferred over the accounting periods. This violates the matching principles.

The matching principles states the revenues and expenses should be acknowledge on the period they occur. In this case the bad debt expense, occur on the period of sale but, with the direct write-off method it is recognize on a subsequent period, generating a distorsion on the net income of the present and future accounting cycles.

You might be interested in
Whenever anyone praises Mark for his good performance, he has the tendency to attribute his success to his personal qualities su
Nat2105 [25]

Answer: Self serving bias

Explanation: In simple words, it refers to the attribute of an individual to take the credit of every positive event themselves, whereas in case of negative events such individuals tends to blame external factors.

In the given case, Mark attributes his success as the outcome of his personality and blames his team or other such factors in case of negative results.

Hence from the above we can conclude that the given case illustrate self serving bias.

8 0
3 years ago
According to the mandatory uniform policy provisions, what is the maximum amount of time after the premium due date during which
Klio2033 [76]
The grace period, during which a policy remain in force even though the premium has not been paid depends on the state. But generally, a grace period of 7 days is usually allowed for weekly premium payments, ten days for monthly payment and thirty one days for other policies.
6 0
3 years ago
You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.27 and the total
andriy [413]

Answer:

the beta be for the other stock in your portfolio is 1.73

Explanation:

The computation of the beta be for the other stock in your portfolio is shown below:

Given that

risk free asset contains the beta of 0

And,  

market beta = 1

Now  

1 = 1 ÷ 3 × 0 + 1 ÷ 3 × 1.27 + 1 ÷ 3 × beta

The beta of other stock = 1.73

hence, the beta be for the other stock in your portfolio is 1.73

Here we assume that one-third should be invested in all 3 things each

3 0
3 years ago
A business_____________occurs when, for practical purposes, one firm purchases another.
Bas_tet [7]

A business acquisition occurs when, for practical purposes, one firm purchases another.

<h3>What is acquisition?</h3>
  • A company makes an acquisition when it buys the majority or all of the shares of another company in order to take over that business. The acquirer can make choices on newly acquired assets without the consent of the target company's other shareholders if they purchase more than 50% of the target company's stock and other assets.
  • Acquisitions can happen with or without the target company's permission and are quite common in business. The approval process typically includes a no-shop restriction.
  • Because these enormous and major transactions frequently make the news, we frequently hear about the acquisitions of large, well-known corporations. In actuality, small- to medium-sized businesses merge and acquire one another more frequently than giant corporations.

To learn more about acquisition visit:

brainly.com/question/15855713

#SPJ4

8 0
2 years ago
Amazon stock prices gave a realized return of 6​%, negative 6​%, 9​%, and negative 9​% over four successive quarters. What is th
Anvisha [2.4K]

Answer:

-1.167%

Explanation:

The current value of the stock is given by applying all of the realized returns to the initial purchase price. Let 'A' be the initial price, the price at the end of the year is:

P = A*(1+0.06)*(1+0.09)*(1-0.06)*(1-0.09)\\P=0.9883A

At the end of the year, the stock had a price of 0.9883 times the initial price, the annual realizes return was:

r=(0.9883 - 1)*100\%\\r= -1.167\%

Annual realized return was  -1.167%.

8 0
3 years ago
Other questions:
  • How old do you have to be to rent a car in georgia?
    5·1 answer
  • A firm is currently producing 100 units of output per day. The manager reports to the owner that producing the 100th unit costs
    14·1 answer
  • When money is used to express the market value of goods and services it is functioning as a:?
    5·1 answer
  • Twenty-six nations of moonland region, have decided to cooperate with one another to eliminate trade barriers among them and cre
    8·1 answer
  • Many traditional costing systems:
    5·2 answers
  • ichael McNamee is the proprietor of a property management​ company, Apartment​ Exchange, near the campus of Penscola State Colle
    11·1 answer
  • National income is other wise called a) Real income b) nominal income c) Gross National product d) money income​
    7·1 answer
  • Omitted variable bias a. will always be present as long as the regression R2 &lt; 1. b. is always there but is negligible in alm
    13·1 answer
  • Drag each tile to the correct box
    12·2 answers
  • Adam smith believed that _____________ would lead to the production of items that consumers want.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!