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nasty-shy [4]
3 years ago
13

When using the direct write-off method off accounting for uncollectible receivables, the account Allowance for Doubtful Accounts

is debited when a specific account is determined to be uncollectible. True or False
Business
1 answer:
lubasha [3.4K]3 years ago
4 0

Answer:

False

Explanation:

Allowance for Doubtful Accounts account is a contra asset account. In this case it would lower the value Accounts Receivable account.

So when you use the write-off method for uncollectible receivables, the account Allowance for Doubtful Accounts is CREDITED. When an asset decreases, it should be credited.

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Suppose the real risk-free rate is 2.50% and the future rate of inflation is expected to be constant at 4.10%. What rate of retu
Yakvenalex [24]

Answer: 6.6%

Explanation:

The Pure Expectations Theory believes that the future long term rate is a reflection of future short term rates.

In terms of a 5 Treasury Security then, the rate of return to be expected is the risk free rate adjusted for inflation.

The Treasury Security has no risk but for inflation risk hence this is all that should be catered for.

Rate of Return on 5 year Treasury Security = Real Risk Free Rate + Inflation Rate

= 2.5% + 4.1%

= 6.6%

5 0
3 years ago
Chun Hei is carrying out a marketing research study. Even after seeking all reasonable available secondary data sources, she has
tekilochka [14]

Answer:

The correct word for the blank space is:  primary.

Explanation:

Primary data collection takes place when data is collected by researchers from direct sources using for that purpose surveys or interviews. Typically, primary data collection gathers the questions formulated on <em>secondary data</em> research since that is the basic step carried out for the data collection process.

8 0
3 years ago
What is the difference between ancient trade and modern trade ​
alexira [117]

Answer:

The main difference between traditional trade and modern trade is that, distribution in modern trade is more organized. Retailers often deal directly with manufacturers. Many large retail chains have integrated their services to offer their own brands in groceries and other goods.

Explanation:

6 0
3 years ago
During the current year, Walter invests $35,000 in each of two separate corporations. Each investment gives him a 20% ownership
Bond [772]

Answer:

B) Only statement II is correct.

  • II. Has $20,000 of taxable income from Corporation Z.

Explanation:

One of the disadvantages of a C Corporation is that their owners (stockholders) are double taxed. That means that the corporation is taxed and then the stockholders are taxed depending on the dividends that they receive. In this case, Walter has $10,000 of taxable income from Corporation X (= $50,000 x 20%).

On the other hand, sole proprietorships, partnerships, limited liability companies and S Corporations are not taxed, they are pass through entities whose owners are taxed directly. In this case, Walter owns 20% of Corporation Z, therefore he must pay taxes on 20% of taxable income = $100,000 x 20% = $20,000.

8 0
3 years ago
The Venoid Corporation has an annual cash inflow from operations from its investment in a capital asset of​ $23,000 (excluding​
statuscvo [17]

Answer:

$80,500

Explanation:

Data provided as per the question

Capital asset = $23,000

Number of year = 5

Income tax rate = 30%

The computation of cash inflow from operations is as shown below:-

Before tax  = capital asset × number of year

= $23,000 × 5

= $115,000

Cash inflow from operations = Before tax × (1 - Income tax rate)

= $115,000 × (1 - 0.3)

= $115,000 × 0.7

= $80,500

3 0
3 years ago
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