Answer:
The correct answer is letter "A": Uncollectible accounts are not anticipated or immaterial.
Explanation:
Direct write-off is a method used to record debts from credit sales. An allowance account is not used with this method but an account receivable directly written-off for the outstanding amount once it is determined to be uncollectible. This method is used for tax-reporting purposes.
Answer:
C. The government pays farmers $100 per ton of wheat produced.
Explanation:
Subsidy is grant/ financial aid given by government to producers of a commodity, to enable its availability in markets at a lower price.
Government paying farmers $100 tone per wheat produced is a subsidy as : It is a financial assistance given by government to reduce wheat's price in markets.
Bank's low interest rate to farmers is just credit ease policy ; Govt putting a tax on wheat imports is opposite of subsidy ; Farmer paying govt $100 per unit wheat is also a form of tax (opposite to subsidy).
Answer:
2. indicates the quantities of the good that people will buy at various prices.
Explanation:
Demand refers to an individual's willingness to buy a product in consideration for a price.
The law of demand states that more of a good is demanded at a lesser price and vice versa. When price of a good changes with other factors affecting demand remaining constant, the quantity demanded for that good changes which is termed as movement along the demand curve.
A demand schedule for a good represents the tabular relationship which shows the quantity demanded by customers at different price levels.
A demand schedule when represented graphically creates a downward sloping demand curve depicting inverse relationship between price of a good and it's quantity demanded.
Answer:
A.) Firm B must have a higher ROE than first A.
Explanation:
Debt ratio is defined as percentage of a company's assets that is made up of debt and so it is calculated as a ratio of debt to assets of a company.
Interest expense is the amount that is paid to service a loan.
This implies that company B has higher loan portfolio than Company A.
Considering the accounting formula
Equity= Asset- Debt
So an increase in debt will result in a decrease in equity.
Return on equity= Net income/Equity
It follows that as debt increases and equity reduces, the ROE will increase since a shrink in the ROE denominator (Equity) will lead to an increase in the ratio.
<span>The use of braces explains the meaning of the words preceding the brace. Here Jillian actually mapping her co-worker's decision-making process so the braces probably contain decisions made on some circumstances. The circumstances may be given outside the brace.</span>
