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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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Consider the following information about a simple country that produces two different goods: Year PriceMilk QuantityMilk Price C
Tema [17]

Answer:

Nominal GDP in 2014 was $1000

Nominal GDP in 2015 was $1665

Nominal GDP in 2016 was $2500

Explanation:

Nominal GDP is the market value of goods and services produced in an economy, un-adjusted for inflation.

NGDP= Q x P

Where

Q= quantity

P= price

Nominal GDP in 2014

NGDP(2014)=$4x 100+ $5 x120

NGDP(2014)=$1000

Nominal GDP in 2015

NGDP(2015)= $4.50x 150+ $5.50x 180

NGDP(2015)=$1665

Nominal GDP in 2016

NGDP(2016)= $5x 200 +$6.00x 250

NGDP(2016)= $2500

7 0
3 years ago
achining and Assembly are operating departments; the other departments are service departments. Factory Administration is alloca
velikii [3]

Complete Question:

check the first three files attached

Answer:

The fourth file gives a breakdown of the answers

3 0
3 years ago
After the Interview The job search doesn't end with the interview. After your interview, be sure to follow up with the appropria
iogann1982 [59]

Answer:

The correct answers are letters "A", "D", and "E": Use a business letter format; Send a separate letter to each interviewer; Mention something you liked about the interview.

Explanation:

A <em>job interview </em>does not end after leaving the prospective company where you could work. Most organizations decide to choose one applicant over another if they contact their interviewers after the interview. For that purpose, that last contact must be a <em>formal letter stating what your impressions are of the company and why you are still interested in obtaining the job position</em>. Besides, if there was more than one interviewer, <em>a unique letter should be addressed to each of interviewer</em>.

3 0
3 years ago
Describe a social enterprise
adelina 88 [10]

A social enterprise is a  business that tries to solve

social problems, improve  people’s lives, or the environment.

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8 0
3 years ago
during its first year of operations, silverman company paid $11,440 for direct materials and $9,900 for production workers' wage
algol13

The amount of finished goods inventory on the balance sheet at year-end is $11,880

What is the cost of producing 5,600 units?

The cost of producing the finished goods of 5,600 units is the sum of direct materials, workers' wages and lease payments and utilities on the production facilities

total production costs=direct materials+ production workers' wages+ lease payments and utilities on the production facilities

total production costs=$11,440+$9,900+$8,900

total production costs=$30,240

cost per unit=$30,240/5,600

The finished goods inventory is units produced minus the units sold

finished goods inventory=5600-3400

finished goods inventory=2,200

finished goods inventory on the balance sheet=2200*$30,240/5,600

finished goods inventory on the balance sheet=$11,880

Find out more about inventory valuation on:brainly.com/question/17230868

#SPJ1

4 0
1 year ago
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