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Katarina [22]
3 years ago
12

The direct write-off method is used when: Multiple Choice Uncollectible accounts are not anticipated or are immaterial. A compan

y elects to use this method as one of several alternatives. A company has greater cash outflows than cash inflows. A company expects excessive sales returns.
Business
1 answer:
stellarik [79]3 years ago
4 0

Answer:

The correct answer is letter "B": A company elects to use this method as one of several alternatives.

Explanation:

The direct write-off method is one of two main approaches used to recognize bad debts being the other the allowance method. Using the direct write-off method implies straight recognizing an account as uncollectible as soon as the firm determines there will not be payment for it. There is no allowance account created for the debt. The bad debt, in either case, diminishes the company's period revenue.

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What is most often the cause for a change in career or lifestyle?
Margaret [11]

Answer:

Adjustment, is the right answer.

Explanation:

Adjustment is the reason that changes the career or lifestyle. For example, a girl who is working, if she gets married then there are chances that she will continue her professional life but after getting pregnant she has to adjust herself to not go outside. She will avoid going to the office, shopping malls, shopping, etc. Therefore, she has adjusted herself with the situation that changes her carrier (working professional) and her lifestyle.

4 0
2 years ago
Give description of a recent (2019-2021)example of how this problem has displayed in Southafrica
Gemiola [76]
South africa’s is a cool place,
7 0
2 years ago
Wendell’s Donut Shoppe is investigating the purchase of a new $40,000 donut-making machine. The new machine would permit the com
Komok [63]

<u>Solution and Explanation:</u>

<u> Answer:1</u> The total annual cash inflows associated with the new machine for capital budgeting purposes is:

=\$ 5200+(2000 * \$ 2.40 \text { per dozen })

=$10000

<u>Answer:2 </u>The internal rate of return promised by the new machine to the nearest whole percent is:

Particulars  Year  Amount ($)

Cash outflow  0  -40000

Cash inflow  1  10000

                2  10000

               3  10000

                4  10000

               5  10000

              6  10000

IRR   13%

=13% using IRR function in excel.

<u>Answer:3</u> IRR=17%

with salvage value

Particulars  Year  Amount ($)

Cash outflow  0  -40000

Cash inflow  1  10000

                 2  10000

                3  10000

               4  10000

                5  10000

              6  22000

IRR   17%

using IRR function in excel.

5 0
3 years ago
Stockholders' equity totaled $94,000 at the beginning of the year. During the year, net income was $24,000, dividends of $9,000
Tomtit [17]

Answer:

$131,000

Explanation:

The computation of the ending balance of stockholder equity is shown below:

= Beginning balance of stockholder equity + net income - dividend paid + additional common stock issued

= $94,000 + $24,000 - $9,000 + $22,000

= $131,000

Therefore, the ending balance of stockholder equity is $131,000

We simply added the net income and the additional common stock issued and deduct the dividend paid to the beginning balance of stockholder equity so that the ending balance could come

7 0
3 years ago
Warnes Motors' stock is trading at $20 a share. Three-month call options with an exercise price of $20 have a price of $1.50. Wh
jek_recluse [69]

Answer:

B. The price of the call option will increase by less than $2, but the percentage increase in price will be more than 10%.

Explanation:

Given

Trading price = $20

Exercise price of call option = $20

Call option price = $1.50

Price increment = 10% to $22

It's not be noted that the discounted present value of a price of an option is represented by its expected payoff.

An increment of $2 in stock price attracts an increment of more than $2 in the payoff option.

Having highlighted that, it's also to be noted that the increment in expected payoff will be by an amount less than $2 and same with present value because the possibility is less than 1. So, the price of the option will increase by less than $2.

Moving to the percentage increase;

This will be larger than 10%.

This is because when stock price increases by 10%, the value of the option will increase by more than 10%.

8 0
3 years ago
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