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wolverine [178]
3 years ago
8

Why should you be debt free

Business
1 answer:
pychu [463]3 years ago
5 0
Answer: To control money.
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Determining Financial Statement Effects of Write-Offs and Bad Debt Expense Using the Allowance Method
uysha [10]

Answer: Please see the analysis below

Explanation: The following are the financial statement effects

                                  Assets Liabilities Stockholders Equity Income Expense

Write-off of $10,000     -           -                   Nil                           Nil         Nil

Bad debt of $8,000     -           +                   -                                -             +

  • Write-off of customer balances of $10,000 would lead to reduction in assets and also reduction in liabilities (since the provision for doubtful accounts reports to liabilities but mapped to the accounts receivable to show the net amount). Here, we have assumed that there is an existing allowance for doubtful accounts that has $10,000 buffer or more. If the write-off was not initially provided for, it would hit expense by debiting bad debt expense and crediting the accounts receivable. <em>Its effects are therefore decrease in asset, decrease in liabilities.</em>
  • Bad debt expense of $8,000 affects the expense and the liabilities/assets. Journal entries to record the bad debt expense is Debit Bad debt expense $8,000; Credit Allowance for doubtful accounts $8,000. So, it affects the expense, liabilities and ultimately the assets (allowance for doubtful accounts is a contra to the accounts receivable). <em>Its effects are increase in expense, increase in liabilities, decrease in stockholders equity, decrease in income and decrease in assets</em>
4 0
3 years ago
Read 2 more answers
The Outlet Mall has a cost of equity of 16.8%, a pretax cost of debt of 8.1%, and a return on assets of 14.5%. Ignore taxes. Wha
krok68 [10]

Answer:

0.36

Explanation:

Cost of equity of 16.8%,

Pretax cost of debt of 8.1%

Return on assets of 14.5%

As per NN proposition: Cost of equity = Return on asset + D/E ratio (Return on asset-Cost of debt)

0.168 = 0.145 + D/E (0.145 - 0.082)

0.168 - 0.145 = D/E (0.064)

0.023 =  D/E (0.064)

D/E = 0.023/0.064

D/E = 0.359375

D/E = 0.36

Thus, the debt-equity ratio is 0.36

8 0
2 years ago
Cuales son sus elementos de ciencia
tresset_1 [31]
Ciencias formales: Lógica y Matemáticas. Ciencias factuales: 1.- naturales (Física, Química, Biología, Psicología individual) y 2.- culturales (Psicología social, Sociología, Economía, Ciencias Políticas, Historia material, Historia de las ideas)

las ciencias humanas sociales. a) Ciencias que establecen leyes: antropología, psicología, lingüística, economía y política, demografía y cibernética, lógica y epistemología científica.   b) Ciencias que interpretan el pasado: historia, filología, crítica literaria, paleontología.  c) Ciencias que establecen normas: derecho, política, legislación.  d) Ciencias filosóficas: metafísica, teoría del conocimiento general, antropología filosófica, axiología, ética, filosofía de la religión, sociología.


6 0
3 years ago
Describe at least three other investments you want to make with your income either now or someday in the future. Explain why you
const2013 [10]
 <span>Don't invest in stock, period. Look up Options....Options are successful in a bearish and bullish market. As opposed to stocks are only in bullish markets. NEVER go in it for the long haul! Plain and simple.</span>
8 0
3 years ago
Read 2 more answers
Craigburg has a working age population of 20 million. Of those, 11 million are employed and 1 million are unemployed. The unempl
Furkat [3]

Answer:

a) 5%; 55%

Explanation:

The unemployment rate is calculated by dividing the number of people unemployed by the number of people in the workforce:

1/20= 0,05*100= 5%

The participation rate is calculated by dividing the number of people employed by the number of people in the workforce:

11/20= 0,55*100= 55%

6 0
3 years ago
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