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marta [7]
3 years ago
14

Which of the following statements is true?

Business
2 answers:
mixas84 [53]3 years ago
8 0

Answer:

The correct answer is B: direct write-off method

Explanation:

Unfortunately, some sales on account may not be collected. Customers go broke, become unhappy and refuse to pay, or may generally lack the ethics to complete their half of the bargain. It is necessary to establish an accounting process for measuring and reporting these uncollectible items. Uncollectible accounts are frequently called “bad debts.”

There are two methods of accounting to manage uncollectable accounts:

1- Allowance method

2- Direct Write-off Method

2- Under this method, there is no allowance account. An account receivable is written-off directly to expense only after the account is determined to be uncollectible. This method is required for income tax purposes. The direct write-off method is easy to operate as it only requires that specific debts are written off as they are identified with a simple journal. The problem with the method, however, is that it does not comply with the matching principle, in that revenue might be recorded in one period, when the customer is invoiced, whereas the expense of writing off the uncollectible amount is recorded in a completely different period when the amount is identified as irrecoverable.

marissa [1.9K]3 years ago
5 0

Answer: B) A)

Explanation:

  •   This kind of method, direct write-off method is referring to your question and it is considering a method that is used for recognizing bad debts expenses that are coming from credit sales of someone's account. With this method there is no account that is considering allowance and receivable that is found on someones's account is written-off directly to expense when there is uncollectible account expense.
  •   One of the greatest advantages is simplicity because those companies who are doing this method have to make only two transactions.

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Which is an attribute of an effective organiation structure?
timofeeve [1]

Answer:

Attributes of an effective organization structure are given below.

1. An effective organizational structure facilitates attainment of objectives through proper coordination of all activities

2. In a effective organizational structure, the conflicts between individuals over jurisdiction are kept to a minimum

3. It eliminates overlapping and duplication of work.

4. It decreases likelihood of runarounds

5. It facilitates promotions of personnel

6. It aids in wage and salary administration

7. Communication is easier at all levels of organizational hierarchy

8. A well-structured organization provides a sound basis for effective planning

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7 0
3 years ago
The centralized computer technology department of Hardy Company has expenses of $320,000. The department has provided a total of
goblinko [34]

Answer:

Retail Division  = $480,000

Commercial Division = $125,000

Explanation:

<u>Divisional income from operations for the Retail Division and the Commercial Division</u>

                                                    Retail Division     Commercial Division

Sales                                               $2,150,000              $1,200,000

Cost of goods sold                        ($1,300,000)             ($800,000)

Controllable Contribution                $850,000                 $400,000

Less Expenses

Selling expenses                            ($150,000)                 ($175,000)

Allocated Central Costs                 ($220,000)                ($100,000)

Net Income before tax                    $480,000                  $125,000

Calculations :

Allocation of Central Costs :

Retail Division (2,750/ 4,000 ×  $320,000) = $220,000

Retail Division (1,250/ 4,000 ×  $320,000) = $100,000

4 0
3 years ago
What does the new york stock exchange (nyse) do?
Sauron [17]
Hey there,
It is located on Wall street new lower Manhattan and it is the world's largest stock exchange<span> by market capitalization of listed companies.

Hope this helps :))

~Top
</span>
8 0
3 years ago
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The role of a _____ is to provide direction and funding for a project.
spin [16.1K]
Project Sponsor, Most project sponsors have many interested parties or stakeholders, but someone must take the primary role of sponsorship.
7 0
3 years ago
Assume you are in the 35 percent tax bracket and purchase a municipal bond with a yield of 7.25 percent. Use the formula present
balu736 [363]

Answer:

before tax corportate bond equivalent: 11.15%

Explanation:

The municipal bond are tax-free making them more attractive than normal corporate bonds.

thus, the municipal bond rate should be compare with the after tax rate of a corporate bond:

before tax rate ( 1 - tax rate) = after tax rate

<u>For this case:</u>

the after tax rate is 7.25%

and the tax bracket is 35%

before taxes ( 1 - 0.35) = 0.0725

0.0725/.65 = 0,1115384 = <em>11.15%</em>

3 0
3 years ago
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