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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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If a household's income rises from $46,000 to $48,000 and its consumption spending rises from $38,00 to $39,500 then the MPC is

bulgar [2K]

Answer:

0.5

Explanation:

marginal propensity to consume Can be regarded as the increase in pay that is been consumer experience on the purchasing of products which is just a part at aggregate. Instead of consumer to save

We are told that income rises from $46,000 to $48,000.

The difference= $48,000-$46,000= $2000

✓consumption spending rises from $38,00 to $39,500

The difference= $39,500-$38,00= $1000

Then the marginal propensity to consume can calculated as ratio of the difference in consumption spending to income rise

=1000/2000=0.5

Therefore, the MPC is 0.5

7 0

3 years ago

(20 points)

neonofarm [45]

false

true

7 0

3 years ago

Read 2 more answers

The process cost summary summarizes:_________

natka813 [3]

Answer and Explanation:

The summary of the process cost involves the physical flow of units, equivalent units of production, cost per equivalent unit, and the total cost assignment to the units worked on the given time period

Only these four things would be shown in the summary of the process cost

Other than this would be ignored

4 0

3 years ago

Based on the corporate valuation model, the total corporate value of Chen Lin Inc. is $500 million. Its balance sheet shows $110

solmaris [256]

Answer:

The best estimate of its stock price per share is $11.20

Explanation:

To compute stock price per share, the equation is shown below:

= Total number of equity ÷ Outstanding number of shares

where,

Total number of equity = Total corporate value - Notes payable - long term debt - preferred stock

= $500 - $110 - $90 - $20

= $280 million

And , outstanding number of shares is 25 million shares

Now, apply the above equation

So, stock price per share = $280 million ÷ 25 million shares = $11.20

Other accounts like retained earnings, total common equity is irrelevant

Hence, the best estimate of its stock price per share is $11.20

6 0

3 years ago

Roadside Markets has 8.45 percent coupon bonds outstanding that mature in 10.5 years. The bonds pay interest semiannually. What

Anarel [89]

Answer:

Total $1,091.0030

Explanation:

The market value of the bond will be the sum of the present value of the cuopon payment and the maturity date:

present alue of cuopon payment will be calculate as present value of an ordinary annuity:

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 42.25 (1,000 face value x 8.45% /2 payment per year)

time 21 (10 years at 2 payment per year+ 1 payment)

rate 0.036 (here we use the YTM rate /2 because there are 2 payment per year)

$42.25 \times \frac{1-(1+0.036)^{-21} }{0.036} = PV\\$

PV $615.1803

<u>Then, for the present value at maturity, we calculate the present value of a lump sum</u>

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 1,000.00

time 21.00

rate 0.036

$\frac{1000}{(1 + 0.036)^{21} } = PV$

PV 475.82

<u>Finally, we add them both together</u>

PV c $615.1803

PV m $475.8227

Total $1,091.0030

8 0

4 years ago