Answer:
d) Quantify potential credit losses
Explanation:
Credit risk is the possibility of a loss happening because of a borrower's failure to payback a loan or meet up with contractual obligations. The overaching purpose of credit risk analysis is the quantification of the level of credit risk that the borrower poses to the lender. The purpose of credit analysis is to determine if borrowers are credit worthy by quantifying the risk of loss that the lender may experience.
Therefore option D is the answer.
Answers
What’s the question you didn’t show a picture
Explanation
Answer:
A. dr. Bad Debt Expense 3,000 and cr. Allowance for Doubtful accounts 3,000
Explanation:
Bad debt Expense will be calculated using the percentage of debt loss. The expense will be calculated using the account receivable balance.
Closing Value of the Allowance for Doubtful Accounts will be as follow
Closing Balance = $100,000 x 5% = $5,000
As Allowance for Doubtful Accounts already have credit balance of $2,000, we need to adjust the remainder to make the closing balance of Allowance for Doubtful Accounts $5,000 at the year end.
Adjustment Value = $5,000 - $2,000 = $3,000
Answer:
c.special cash fund
Explanation:
The petty cash fund is a special cash fund in which the small amount of the cash kept on hand for paying out the minor expenses like office supplies, etc
So as per the given situation, the petty cash fund is the special cash fund
Therefore the option c is correct
And, the rest of the options are incorrect
The answer is:
- Greater
- Higher
Since you did not spend large amount of money in renting, you can move freely without feeling that you've spend to much for the place to stay. This is why renting is considered to be more flexible compared to owning a house.
But, Renting tend to lead to higher cost in the long run because the owner of the property would definitely impose higher price than they spend to buy the property. Otherwise they would not obtain any profit.
