Answer:
The use of the allowance method of accounting for bad debts.
Explanation:
We use the allowance method to match the expected ad debt with the sales or account receivables which generates.
As sales of a givne month can be declared uncollectible after several month using a direct method we are putting the burden of the uncollectible in another accounting period while leaving the one which did that sale untouched.
The allowance makesthe expense in the same time period thus, it follows the recognition principle.
Answer:
Cash Paid = $62000
Explanation:
To calculate the amount of cash paid by the business for operating expenses during the year, we use the following equation.
Cash Paid = Opening Accrued liability + Operating expenses for the year - Closing Accrued Liability
By plugging in the values for opening accrued liabilities, operating expenses for the year and closing accrued liabilities in the above formula, we can calculate the amount of cash paid for operating expenses.
Cash Paid = 15000 + 52000 - 5000
Cash Paid = $62000
Answer:
$1,269.46
Explanation:
Earnings Before Interest and Tax (EBIT) refers to the net income which is a difference between the revenue of an organisation and the expenses that were incurred in order to generate that revenue. The calculation of the EBIT is usually for a particular year and it is usually found in the Income Statement part of an organisation's financial statement.
To calculate the EBIT therefore, the Tax as well as interest must be added back to the Net Income after tax (usually added to retained earnings)
Therefore, Net Income = Dividends paid + Net Income (added to retained earnings)
= $75 + $418 = $493 - This represents a partial net income
The next step is to calculate the taxable income as follows:
The net income is $493, and the Tax rate is 35%
Taxable Income = $493/ (1-0.35) = $758.46
Earnings before interest and tax therefore =
Interest paid + Taxable Income
= $511 + $758.46 = $1,269.46
Answer:
$11.60
Explanation:
In ascertaining the parity price of the common stock, we need to ascertain the conversion ratio which is the par price of the preferred stock divided by the convertible price
The par value of the preferred stock=$100(since call price is $110)
convertible price=$10
conversion ratio=$100/$10=10
The parity price is the current market price of the preferred stock divided by the conversion ratio
Parity price=$116/10
Parity price=$11.60
The correct answers are, Public, Environment, Derivative Suit, Benefit Report.
Explanation:
Any corporation which is established to benefit people, society and the environment, is called as the Benefit corporation.
The main purpose is to benefit the Public, so the directors must consider the impacts of their decisions on society and the Environment. Shareholders have an additional right to private action called a Derivative Suit, that allow them to sue the corporation for failure to pursue the purpose. Finally, benefit corporations must issue an annual Benefit Report on its performance and include a third party standard of assessment.
Learn more about Benefit Corporations at:
brainly.com/question/13648699
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