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Fudgin [204]
3 years ago
5

Which of the following is not an advantage of the average rate of return method?

Business
1 answer:
Rufina [12.5K]3 years ago
5 0

Answer:

a. emphasizes accounting income

Explanation:

Average rate of return is calculated using annual returns, for the period for which the investment is made.

The formula to calculate so = \frac{Average return during the period}{Average investment}

Where average return during the period = total of return during the entire life of the investment divided into number of years, or tenure of investment.

Average investment = (Opening investment + Closing investment)/2.

Therefore it does not consider the accounting income, it takes into consideration, it considers total return from each particular investment.

Thus emphasizing on accounting income is not an advantage of average rate of return method.

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Assume Zap industries reported the following adjusted account balances at year-end. 2019 2018 Accounts Receivable $ 1,690,200 $
Scrat [10]

Answer:

amount of Bad Debt Expense for 2019 = $92,000

Explanation:

A bad debt expense is a uncollectible receivable amount incurred on a credit sale to a customer, who is no longer able to pay the debt, due to bankruptcy or other financial problems. Companies make provision for these kind of credit losses in the allowance for doubtful accounts, and hence records the amount used from the allowance for doubtful accounts as the bad debt expense.

In our example, the allowance for doubtful account for 2019 is $92,000, hence since it was used to settle part of the credit losses, this becomes the bad debt expense.

3 0
3 years ago
Concord Corporation produces 5000 units of part A12E. The following costs were incurred for that level of production: Direct mat
mart [117]

Answer:

b. $85,000

Explanation:

First, we should prepare the analysis of cost savings if the company buys outside.

Analysis of cost and savings

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Savings

Variable cost = $80,000

Fixed cost = $175,000

Net income effect

($85,000)

The effect is a decrease in net income by $85,000.

7 0
3 years ago
After a business transaction has been analyzed and entered in a journal, the next step in the recording process is to transfer t
Jlenok [28]
After recording the transaction in journal you must record it on General Ledger.
3 0
3 years ago
Building a new mall what will be the input, the conversion, and the output
myrzilka [38]
In building a new mall,

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Conversion :  Building process

Output : The actual mall itself

hope this helps
6 0
3 years ago
Four months ago, you purchased 1,300 shares of lakeside bank stock for $23.32 a share. you have received dividend payments equal
Marina CMI [18]
<span>If I purchased 1,300 shares of lakeside bank stock for $23.32 a share. The total worth of the share is 1, 300 * 23.32 = $30, 316. Okay I received payments dividend worth 0.61 a share; that becomes 0.61 * 23.32 = $14.2252. I sold 1, 300 shares for $24.32. So I sold it for 1, 300 * 24.32 = $31616. My total return = (Amount I sold the share + dividend received) - Amount I bought the share. So we have (31616 + 14.2552) - 30316 = $31630.2552 - $ 30, 316 = $1314.2552</span>
7 0
3 years ago
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