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2 years ago

What is the normal balance for the allowance for doubtful accounts (debit or credit), and why?

Business

1 answer:

abruzzese [7]2 years ago

7 0

The allowance for doubtful accounts has a normal credit account.

This account is a contra-asset account. Since assets have a normal debit balance, this account would have a normal credit balance.

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Swiss Furniture Company manufactures bookshelves and uses an activityminus−based costing system. The following information is pr

UkoKoshka [18]

Answer:

Cost of material handling and assembling per book shelf = $135.0811

Explanation:

Material Handling = $7,700 for 10,430 parts

Assembling = $10,600 for 10,430 parts

Packaging $2,640 for 1,490 bookshelves.

Each bookshelf consists 77 parts

We need to calculate material handling and assembling cost per book shelf.

Material handling cost per part = $7,700/10,430 = 0.738

Cost for 77 parts = 0.738 X 77 =$56.826

Assembling costs per part = $10,600/10,430 = $1.0163

Cost for 77 parts = $1.0163 X 77 = $78.2551

Cost of material handling and assembling per book shelf = $56.826 + $78.2551 = $135.0811

8 0

3 years ago

Which are broad categories of action for crafting strategic moves to improve a diversified company's overall performance? (Choos

vlabodo [156]

Question Completion with Options:

O sticking closely with the existing business lineup and pursuing opportunities that those businesses present.

O Divesting certain businesses and retrenching to a narrower base of business operations.

O Widening the company's business scope by making new acquisitions in new industries.

Answer:

The broad categories of action for crafting strategic moves to improve a diversified company's overall performance are:

O sticking closely with the existing business lineup and pursuing opportunities that those businesses present.

O Divesting certain businesses and retrenching to a narrower base of business operations.

O Widening the company's business scope by making new acquisitions in new industries.

Explanation:

In addition to pursuing existing business opportunities, a diversified company can increase its performance indexes by divesting itself of certain unprofitable lines of business or slow-growth businesses and focusing its resources on cash cows and stars. The pursuit of stars will lead it to make new acquisitions in relatively new industries in order to remain attractive to investors, otherwise, it runs the risk of growing into extinction like the historical dinosaur.

7 0

3 years ago

A negative cash flow to owners indicates that a firm has ________. Question 3 options: borrowed more money. sold additional shar

Alex17521 [72]

Answer: Issued dividends while maintaining a constant number of outstanding shares of stock

Explanation:

A negative cashflow is meant to indicate that cash has left the company. If this is in relation to the owners then it either means that the company has repurchased shares or paid out dividends.

From the options, the correct answer would be that the company issued dividends while maintaining a constant number of outstanding shares of stock. This would be reflected in the Financing section of the Cashflow statement.

5 0

2 years ago

Why do older kids think they know every thing?

fomenos

Answer:

I have no clue tbh lol they think they are the boss of us

8 0

2 years ago

Read 2 more answers

Which of the following statements regarding a firm’s optimal capital structure are true? Check all that apply. The optimal capit

Reptile [31]

Answer:

The optimal capital structure minimizes the firm's weighted average cost of capital.

Explanation:

The ideal capital structure of a company refers to the number of shares in the capital of the company itself and partners in the total capital invested so that that company could exist, thus leading to the minimum possible cost of capital, resulting in an allocation efficient capital. This term can be defined as a structure that is directly related to a degree of business risk and the existence of tax taxes on interest on debts.

In summary, the ideal capital structure minimizes the company's weighted average cost of capital.

7 0

2 years ago