Answer:
The second step in the strategic-management process is an <u>assessment of the current reality.</u>
Explanation:
In order for management to carry out an assessment, they must have an objective view of what the organization is really doing.
Management can use the following tools to perform a correct assessment:
- SWOT analysis
- forecasting
- benchmarking
- Porter's industry analysis model
The Allowance for Doubtful Accounts T-account will have the write-offs of specific customers sales discounts and allowances on the credit side.
<h3>What is
Doubtful Accounts?</h3>
It lowers the value of an asset—in this case, the accounts receivable—the allowance for dubious accounts is referred to as a "contra asset."
The allowance, also known as a bad debt reserve, is management's projection of the amount of accounts receivable that customers will not pay.
Thus, option B is correct.
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Answer:
Alpha
The effects on assets, liabilities, and net income are as follows:
Assets are understated by $500
Liabilities are understated by $700
Net income is overstated by $200
Explanation:
a) Data and Calculations:
Interest earned from a note receivable = $500
Interest incurred from a note payable = $700
Failure to record these has the following effects:
Assets are understated by $500 (< $500)
Liabilities are understated by $700 (< $700)
Net income is overstated by $200
b) Adjusting Journal Entries (AJEs) ensure that the accounts are up-to-date in accordance with the accrual concept of financial accounting. The accrual concept requires that transactions affecting a financial period must be reported in the affected period. This implies that expenses incurred must be recognized in the period they are incurred and not when cash is paid. Similarly, revenue earned must be recognized in the period they are earned and not when cash is received.
