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makkiz [27]
3 years ago
9

The direct write-off method records bad debts expense only when an account becomes uncollectible, which is not always in the sam

e period as the sale. For this reason, the direct write-off method violates the __________ principle.
Business
1 answer:
jolli1 [7]3 years ago
8 0

Answer:

The correct word for the blank space is: expense recognition principle.

Explanation:

The expense recognition principle establishes when expenses and revenues must be recorded in the accounting books of a company. Under the accrual basis of accounting method, revenues are recognized when earned and expenses whenever consumed. While using the cash basis accounting method, revenues are recognized when earned and expenses when they are paid to suppliers not when invoices are sent.

In both cases, <em>expenses and revenues are recognized during the same period when they take place. That is the reason why the direct write-off method fails to fulfill the expense recognition principle because bad debt can be recognized as an uncollectible account not necessarily in the same period where the debt instrument was issued.</em>

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Al's obtained a discount loan of $78,500 today that requires a repayment of $98,000, 3 years from today. What is the APR
Andrei [34K]

Answer:

R = 8.2803%

Rounded: 8%

Explanation:

Solving our equation:

r = (1/3)(98000/78500) - 1) = 0.08280255

r = 0.08280255

Converting r (decimal) to R a percentage

R = 0.08280255 * 100

= 8.2803%

Hope this helped! :D

8 0
3 years ago
Read 2 more answers
Suppose that in a given month $40 million is deposited into the banking system while $50 million is withdrawn. Assume that the r
vladimir1956 [14]

Answer: Money Supply Decrease of $50 million.

Explanation:

$40 million was deposited while $50 million was withdrawn.

The net change in the banking system would therefore be,

= 40 - 50

= -$10 million

($10 million ) means that more money left than came in.

The money supply can be calculated as the net change multiplied by the money multiplier.

The Money Multiplier is denoted as 1/reserve requirement.

Change in Money Supply is,

= -10 million * 1/20%

= -$50 million

Going by the negative number it means that Money Supply reduces by $50 million.

8 0
3 years ago
United Machining's margin was 2% and turnover was 3.0 on sales of $60 million for the year. On the basis on this information____
Hunter-Best [27]

Answer:

B, net income for the year was $1,200,000, average assets were $20 million, ROI was 6%

Explanation:

net income is calculated by multiplying the percentage margin by the sales. We have,

(2 ÷ 100) × $60,000,000

= 0.02 × $60,000,000

= $1,200,000

To calculate the average assets, sales is divided by the turnover.

we have, ($60,000,000 ÷ 3.0)

= $20,000,000.

To calculate the ROI, margin and turnover are multiplied.

we have,

(2% × 3.0) = 6%

Cheers.

3 0
3 years ago
GDP is the: national income minus all non-income charges against output. monetary value of all final goods and services produced
olasank [31]

Answer:

The correct answer is: monetary value of all final goods and services produced within the borders of a nation in a particular year.

Explanation:

GDP of a nation can be defined as the monetary value of all the goods and services that are produced within the geographical boundaries of the nation in a year.

The GDP does not include intermediate goods and services as it may lead to double counting. The reselling of objects is also not included.

It is used to measure the health of a nation's economy. It shows the level of economic activities in a nation. An increase in GDP means economic growth.

6 0
3 years ago
The income section of a budget will include your
Oksanka [162]
I think the answer is D
3 0
2 years ago
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