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Tanzania [10]
3 years ago
11

One of the weaknesses of the direct write-off method is that it

Business
1 answer:
Gennadij [26K]3 years ago
5 0

Answer:

violates the matching principle

Explanation:

The direct write-off method is an accounting method for recognizing bad debts expense arising from credit sales when individual invoices has been identified as uncollectible.

In Accounting, one of the weaknesses of the direct write-off method is that it violates the matching principle.

The direct write-off method is a method of accounting for uncollectible receivables.

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One of Jacinta's regular clients sends her an email accusing her of charging more money for a couch than it is really worth. The
shepuryov [24]
It’s C focus on discussing the
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7 0
3 years ago
Corporation includes $200,000 of $1 par common stock and $400,000 par of 6% cumulative preferred stock. The board of directors o
vlabodo [156]

Answer:

The amount of dividends paid to common stockholders in 2021 $18000.

Explanation:

The cumulative preferred stock is the stock that accumulates dividends when the dividends are partially or not paid at all in a certain year. The dividends must be paid in the future.

The common stock holders are paid after the preferred stockholders are paid.

The preferred stock dividend per year = 400000 * 0.06 = $24000 per year

As the cash dividends paid in 2019 and 2020 are $20000 each,

The dividend outstanding on preferred stocks for 2019 is = 24000 - 20000 = $4000

Similarly, the dividends outstanding on preferred stocks for 2020 is = 24000 - 20000 = $4000

The total dividends outstanding at start of 2021 = 4000 + 4000 = $8000

Preferred dividend for 2021 = 24000

Total dividend on preferred stock = 24000 + 8000 = $32000

The amount of dividends that common stock holders will receive in 2021 = 50000 - 32000 = $18000

4 0
3 years ago
A working group convened by NASAA has developed a model fee disclosure schedule to help investors better understand the costs in
WARRIOR [948]

Answer:

Correct Answer:

C) issuance of a stock certificate

Explanation:

In the model developed by group working for NASAA which was to disclose model fee and cost involved in doing business with them, it would disclose all associated cost involved. <em>The only thing it would not disclose would be regards to stock certificate issuance since it falls outside their perview.</em>

7 0
4 years ago
Cassidy is planning to obtain a loan from her bank for $210,000 for a new home. the bank has approved cassidy’s loan at a fixed
Grace [21]

Cassidy's approximate monthly payment stands at $1420. if Cassidy lives planning to obtain a loan from her bank for $210,000 for a new home.

<h3>What is the payment monthly?</h3>

The monthly payment is the quantity paid per month to pay off the loan in the time period of the loan. When a loan is taken out it isn't only the top amount, or the original payment loaned out, that needs to be repaid, but also the good that accumulates.

<h3>What is a loan amortization schedule?</h3>

It is described as the systematic method of representing loan payments according to the time in which the principal amount and interest exist mentioned in a list manner

It is given that:

  • Cassidy lives planning to obtain a loan from her bank for $210,000 for a new home.
  • A fixed annual interest rate of 2.7% compounded monthly for 15 years.

The formula is:

P=F_{P} (i)/1-(1+i)^{-1}

Plug all the values in the above formula:

P=210000(2.7/12)/1-(1+(2.7/12)^{-15*12}

$1420.

Hence,

Cassidy's approximate monthly payment stands at $1420.

To learn more about monthly payment, refer

brainly.com/question/2151013

#SPJ4

4 0
1 year ago
The management of Kabanuck Corporation is considering dropping product V41B. Data from the company's accounting system appear be
Makovka662 [10]

Answer:

$191,500

Explanation:

If the item is not dropped:

Loss = Sales - Variable expenses - Fixed manufacturing expenses - Fixed selling and administrative expenses

       = $923,000 - $405,500 - $337,000 - $244,000

       = (63,500) loss

Fixed mfg. expenses remaining:

= Fixed manufacturing expenses - Avoidable Fixed manufacturing expenses

= $337,000 - $207,500

= $129,500

Fixed selling and administrative expenses remaining:

= Fixed selling and administrative expenses - Avoidable Fixed selling and administrative expenses

= $244,000 - $118,500

= $125,500

Loss in expenses remaining if item is dropped :

= Fixed mfg. expenses remaining + Fixed selling and administrative expenses remaining

= $129,500 + $125,500

= ($255,000)

Overall net operating income would decrease by:

= Loss in expenses remaining if item is dropped - Loss in expenses if item is not dropped

= $255,000 - $63,500

= $191,500

5 0
4 years ago
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