The information that a manager or an owner can get by having an insight into the accounting information about accounts receivable and bad debts is how much amount of goods are sold to the consumers on credit and how much is the amount that the consumers are not able to pay for the goods that they had bought.
It will also help to decide how much of a provision is required to be kept in advance for bad debts. If a company has a high amount of accounts receivable but a small number of bad debts then it shows that the company is efficient in doing the credit sales and gives goods on credit only to those consumers who can give the debt back.
The manager or the owner can decide that they can do more credit sales as there is less chance of it becoming worse. If a company has a high amount of accounts receivable and a high amount of bad debts then it shows that the company is inefficient in doing the credit sales and gives goods on credit to consumers without a surety of getting the debt back.
The manager or the owner can decide that they cannot do more credit sales as there is more chance of it becoming worse.
Learn more about accounting information here brainly.com/question/26261281
#SPJ4
8 C, 11 B, 13 D, 14 B, 20 B
Answer:
The expected return on this stock is 11.38%.
Explanation:
We apply the Capital Asset Pricing Model (CAPM) to solve the problem.
Under the CAPM, we have:
Return on a stock = Risk-free rate + Beta * ( Return on Market - Risk free rate).
in which:
Risk-free rate is given at 3.1%;
Beta is given at 1.15;
Return on Market is given at 10.3%;
So:
Return on a stock = Risk-free rate + Beta * ( Return on Market - Risk free rate) = 3.1% + 1.15 * ( 10.3% - 3.1%) = 11.38%.
Thus, the answer is 11.38%.
