1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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.

You might be interested in
Which are factors that both budget constraint diagrams and production possibilities frontier diagrams highlight
Jobisdone [24]

Answer:

scarcity, tradeoffs, efficiency, and opportunity costs.

7 0
2 years ago
Justus Motor Co.has a WACC of 11.50%, and its value of operations is $25.00 million. Justus's free cash flow is expected to grow
lakkis [162]

Answer:

FCF_0=1.05

So option (b) is correct option

Explanation:

We have given value of operation PV = $25.00

WACC, that is Ke = 11.50% = 0.1150

It is grow at a constant rat of 7 % so g = 0.07

We have to find the value of FCF_0

We know that value of operation is given by

PV=\frac{FCF_0(1+g)}{Ke-g}

So 25=\frac{FCF_0(1+0.07)}{0.1150-0.07}

FCF_0=1.05

So option (b) is correct option

4 0
3 years ago
The consumer decision making process is comprised of these five steps: Need recognition, Environmental Scanning, Evaluation of a
Goshia [24]

Answer:

need recognition, information search, evaluation of alternatives, purchase, and post purchase behavior

Explanation:

In simple words, A consumer refers to an individual who acquire a resource in exchange of money or some other resource, to satisfy his or her needs.

The customer decision-making process involves consumers becoming aware of and identifying their interests, gathering input about how to better meet those needs, weighing alternative possible choices, making a buying judgment as well as evaluating their investment.

5 0
3 years ago
Someone help me in my homework please?
aniked [119]

Answer:

im sorryi wish i was good at math

Explanation:

im failing math btw

3 0
3 years ago
Firms HD and LD are identical except for their level of debt and the interest rates they pay on debt—HD has more debt and pays a
Luden [163]

Answer:

2.41%

Explanation:

The difference between the two firms' ROEs is shown below:-

Particulars          Firm HD                             Firm LD

Assets $200      Debt ratio 50%            Debt ratio 30%

EBIT $40            Interest rate 12%          Interest rate 10%

Tax rate 35%

Debt                            $100                              $60

Interest                        $12                                  $6

                          ($100 × 12%)                       ($60 × 10%)      

Taxable income         $28                                 $36

                               ($40- $12)                          ($40 - $6)

Net income                $18.2                                $22.1

                       $28 × (1 - 0.35)                     $36 × (1 - 0.35)

Equity                          $100                                $140

                              ($200 - $100)                   ($200 - $60)

ROE                              18.2%                               15.79%

                           ($18.2 ÷ $100)                   ($22.1 ÷ $140)

Taxable income = EBIT - Interest

Net income = Income - Taxable income

Equity = Assets - Debt

ROE = Net income ÷ Equity

Difference in ROE = ROE Firm HD - ROE Firm LD

= 18.2% - 15.79%

= 2.41%

So, for computing the difference between the two firms' ROEs we simply deduct the ROE firm LD from ROE firm HD.

3 0
3 years ago
Other questions:
  • Bau Long-Haul, Inc., is considering the purchase of a tractor-trailer that would cost $283,215, would have a useful life of 7 ye
    8·1 answer
  • Yard Tools manufactures lawnmowers, weed-trimmers, and chainsaws. Its sales mix and unit contribution margin are as follows. Sal
    12·1 answer
  • Which of the following would be an effective way to let a national producer of children’s toys know that its products are substa
    11·1 answer
  • Why is there so much government regulation involving social responsibility issues? Should there be less?
    12·1 answer
  • One tip for building well-reasoned business positions is to:__________.1. not get distracted by audience emotions. 2. dedicate m
    9·1 answer
  • Super Saver Groceries purchased store equipment for $25,000. Super Saver estimates that at the end of its 10-year service life,
    7·1 answer
  • According to the Fed, what were the major problems during the financial crisis of 2008? Check all that apply.
    9·2 answers
  • Keri has already installed Microsoft Office Tools. When she opens Excel, the first step toward making the Analysis ToolPak avail
    6·2 answers
  • What are financial institutions and why are they so important
    13·1 answer
  • Where will your transactions take place? Is the purchaser the user of your product/service?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!