Answer:
The bad debts would be debited with $5,000.
Explanation:
The bad debts under the allowance method is calculated by either as a percentage of accounts receivables or as a percentage of sales.
Percentage of Sales method:
In the percentage of sales method the allowance is calculated as below:
Allowance for doubtful debts = Sales * Percentage for doubtful debts
Allowance for doubtful debts = $500,000 * 1% = $5,000
Now always remember that this amount will be used only and their is no need to include the allowance for doubtful accounts balance.
Whereas on the other hand, in the percentage of accounts receivable method the allowances are included in the amount calculated.
The entry would be:
Dr Bad Debt Expense $5000
Cr Allowance for Doubtful Debts $5000
Answer:
csh used for operatng activities 1,600
Explanation:
the operatng activities will be the cash outflow for business day-to-day operation
the rent is an operational cost, as the rented space is used daily for the business.
the workers salaries are operating activities, they work and provide their work to make the business operate
The equipment is an investment activity. the equipment will generate cash over the course of his useful life, is an investing activity. It decreases cash now, to increases in the future.
The Loan is a financing activity, the company is paying a loan which in a previous period provide cash.
So, total operating activities:
rent 500
salaries 1,100
total 1,600
Answer:
D) Stock prices of companies that announce increased earning in January tend to outperform the market in February.
Explanation:
The above is consistent with the Efficient Market Hypothesis. All others are a direct contravention.
<em>The efficient market hypothesis (EMH), also known as the efficient market theory, is a hypothesis that states that the prices of shares contain all information and that consistent alpha generation is impossible.</em>
According to the hypothesis, stocks always trade at their fair value on exchanges, making it impossible for investors to purchase undervalued stocks or sell stocks for inflated prices.
This means that it should not be possible to outperform the overall market through professional stock selection or market timing.
The only way according to EMH that an investor can obtain better returns is by purchasing riskier investments.
By implication, this also means that it is not possible to "beat the market" consistently on a risk-adjusted basis since market prices should only react to new information.
You would note that in the option D, earning (which is a key driver for demand of stock) is announced in one month. The natural reaction would be for the demand for that stock to surge in the next month.
Answer:
a. $74
Explanation:
The computation in the change in cash for the year is shown below:
Net income $100
Less: Purchase of Debt Securities -$7
Less: Amortization of Premium on Bonds payable -$4
Less: Purchase of Treasury Stock -$5
Less: cash Dividends paid -$10 {($100 - $92) + $2}
Change in Cash $74
Hence, the correct option is A. $74
We simply deduct all the items from the net income so that the change in cash could come
The focus on green real estate and the number of people seeking sustainability has grown because of a wide array of market factors. Increased demand for multiple-family homes is NOT a growth factor.
<h3>What is a green project in real estate?</h3>
It's not just developers embracing sustainability; increasingly, green real estate is driven by tenants. Businesses that strongly advocate corporate social responsibility are increasingly expecting a better indoor environment, lower operating costs, and enhanced market value for their spaces.
A green home is a type of house designed to be environmentally sustainable. Green homes focus on the efficient use of energy, water, and building materials.
To learn more about green project visit the link
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