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3 years ago

What happens if the amount of uncollectible account expense is overstated at year end?

Business

1 answer:

sergiy2304 [10]3 years ago

4 0

Answer: The correct answer is "A : Net Accounts Receivable will be understated.".

Explanation: If the amount of uncollectible account expense is overstated at year end the Net Accounts Receivable will be understated.

because it had been estimated that a larger amount of accounts receivable would not be possible to collect, but at the end of the year it turned out that more accounts could be collected than was believed possible.

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Suppose the interest on a foreign government bonds is 7.5%, and the current exchange rate is 28 foreign currencies per dollar. I

alexandr1967 [171]

Answer:

implied credit spread = 1.13 %

Explanation:

given data

interest on foreign government bonds = 7.5%

current exchange rate = 28

forward exchange rate = 28.5

risk-free rate = 4.5%

solution

we get here risk free rate by the forward exchange rate that is

F = spot exchange rate × \frac{1+Rr}{1+Rs} ....................1

put here value

28.5 = 28 × \frac{1+Rr}{1+0.045}

solve it we get

Rr = 0.0637

Rr = 6.37%

implied credit spread = interest on foreign government bonds - risk free rate

implied credit spread = 7.5% - 6.37%

implied credit spread = 1.13 %

4 0

3 years ago

A project that cost $80000 with a useful life of 5 years is being considered. Straight-line depreciation is being used and salva

just olya [345]

Answer:

22%

Explanation:

Net income = Annual cash flow - Depreciation

Net income = 24350 - (80,000-5,000 / 5)

Net income = 24350 - 15,000

Net income = $9350

Average investment = Beg. value + End. Value / 2

Average investment = 80,000 + 5,000 / 2

Average investment = $42,500

Annual rate of return = Net income / Average investment * 100

Annual rate of return = $9350 / $42,500 * 100

Annual rate of return = 0.22 * 100

Annual rate of return = 22%

7 0

2 years ago

Read 2 more answers

The State of Chiapas, Mexico, decided to fund a program for literacy. The first cost of $250,000 now and an updated budget of $9

timama [110]

The perpetual equivalent annual cost is - $35013

<h3 /><h3>The perpetual annual cost calculation</h3>

interest i = 10%

Period = n = 7 years

Formula

A/F = i/(1+i)^n-1

= 0.1/(1+0.1)^7-1

= 0.1054

The perpetual annual cost

= -250000*0.1-95000(0.1054)

= -25000-10013

= - 35013

Therefore the perpetual equivalent annual cost is $35013

8 0

2 years ago

What statement below best defines "exporting pollution"? When a country decreases its exports, resulting in a lower level of dom

tamaranim1 [39]

Answer:

"Exporting pollution" occurs when a country reduces its domestic pollution, but increases imports that cause pollution in other countries.

Explanation:

Exporting pollution is a commercial and environmental process through which the most developed countries send their most polluting companies to produce their goods to underdeveloped countries. These companies, generally industrial, transfer their production of carbon dioxide and other polluting gases to these countries, which receive large employers and economic benefits but in turn accept higher rates of contamination in their territories.

4 0

3 years ago

Haddie wrote a check to the grocery store for $156.00. However, when she looks at her check register later that night, she sees

miss Akunina [59]

Depends on the banks policy. My bank is pretty good, and with my opt in overdraft protection, there are no incurred fees.

6 0

2 years ago