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
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.

You might be interested in
A Firm needs to replace most of its machinery in five years at a cost of $500,000. The company wishes to create a sinking fund t
DaniilM [7]

Answer:

The quarterly deposit required is $ 20,578.36

Explanation:

in order to determine the needed quarterly deposit, we make use of pmt formula in excel, which is given as :

=-pmt(rate,nper,-pv,fv)

rate is the rate of return on the deposit at 8% per year but 2% per quarter(8%/4)

nper is number of deposits required in the fund,which number of years ,5 multiplied by 4(4 deposits per year)

pv is the present of the value of the future amount which is zero as it is not required.

Fv is the amount expected in 5 years which is $500,000

=-pmt(2%,20,0,500000)

pmt= $20,578.36

6 0
3 years ago
______________ are enacted when discontented sellers, feeling that prices are too low,appeal to legislators to keep prices from
TEA [102]

Answer: Price Ceilings

Price Ceilings are usually controlled by the Government and their main use is to keep prices up. Sometimes a customer will switch to other goods and that person that wants there item bought the price will get lower to attract more customers. In this case, they want to keep the prices from falling - therefore, it would be Price Ceilings.

6 0
3 years ago
Liability of foreignness is the inherent disadvantage experienced by foreign firms in host countries because of their non-native
gizmo_the_mogwai [7]

Answer:

True

Explanation:

It is an inherent disadvantage that foreign firms experience in the host country because of non-native status. It is considered as liability of foreignness as foreign companies are well versed with the cultural difference, tax policies and people´s response to the product and services produced, therefore foreign companies need to invest resources to learn the technique of business in different country.

To have competitive advantage in the foreign market, the companies should have organized resources, cost to compete and capabilities to offset the liability of foreignness.

8 0
3 years ago
Transactions that affect earnings do not necessarily affect cash. Identify the effect, if any, that each of the following transa
sweet-ann [11.9K]

Answer:

Explanation:

Net income is the summation of all revenue generated substracted from all costs such as tax, interest and others it is the profit made.

Cash flow is the amount that the producer needed to spend when stating an accounting section romove from amount needed at the end of that accounting section.

Whenever transactions are carried out,

Cash flow and net income can be affected in ways that are not the same, once goods is sold the net income is noted by the manufacturer, let say he sell goods of $400 to a retailer if the retailer doesn't pay instantly, it mean the manufacturer has $400 cash less.i.e net income

a. Purchased $125 of supplies for cash.

Answer:

✓There is decrease in cash by $125

✓There is no change as far as Net Income is concerned here.

b. Recorded an adjusting entry to record use of $45 of the above supplies.

Answer:

✓There is No change to Cash here,

✓The net income is is decreased by $45.

c. Made sales of $1,220, all on account.

Answer:

✓There is No change to Cash here,

✓The Net Income is increased by $1,220

d. Received $850 from customers in payment of their accounts.

Answer:

✓ There is Cash increase, by. $850 ,

✓ There is No change to Net Income

e. Purchased equipment for cash, $2,500.

Answer:

✓There is Cash is decreased by $2,500

✓ There is no change to Net Income

f. Recorded depreciation of building for period used, $610.

Answer:

✓ There is No change to cash,

✓ there is decrease in Net income by

$610

6 0
3 years ago
The task of securing all necessary personnel, space, and financing; supervising all production and promotion efforts; fielding a
kirill115 [55]

Answer: producer

Explanation: The task of securing all necessary personnel, space, and financing; supervising all production and promotion efforts; fielding all legal matters; and distributing the proceeds derived from receipts falls to the producer.

Skills expected from a producer are:-

Organization / Scheduling.

Budgeting.

Problem Solving skills.

Multitasking skills.

Communication skills.

6 0
3 years ago
Other questions:
  • Which of these actions could constitute a breach of the Civil Rights Act?
    12·1 answer
  • During 2017, Ziplock Manufacturing expected Job No. 89 to cost $700,000 in overhead, $1,000,000 in direct materials, and $500,00
    10·1 answer
  • Identify all of the correct statements:
    7·1 answer
  • What is the relationship between average total cost (ATC) and marginal cost (MC)? A. It is exactly the same as the relationship
    6·1 answer
  • On July 1, 2017, Brigham Corporation purchased Young Company by paying $250,000 cash and issuing a $100,000 note payable to Stev
    5·1 answer
  • Which of the following companies is the easiest type to set up? A. Sole proprietorship B. LLC C. C corporation D. S corporation
    15·2 answers
  • A codec converts an incoming digital signal to an analog signal for transmission over an analog network. True False
    11·1 answer
  • 15.क्रिया शब्दों के काल के भेद चुनिए- माँ ने मिठाई बनाई ।।
    11·2 answers
  • An export subsidy will ________ producer surplus, ________ consumer surplus, ________ government revenue, and ________ overall d
    15·1 answer
  • When asked a difficult question during an interview, _____.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!