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3 years ago

Convertible bonds:_________

Business

1 answer:

tigry1 [53]3 years ago

5 0

Answer:

c) Provide potential benefits to both the issuer and the investor.

Explanation:

Convertible Bonds are Bonds that can be converted to Common Stocks at the the option of the investor or the issuer.

They represents the potential voting rights to the investor if they are converted to Common Stocks. This means the investor can take part in decision making of the company.

They also presents benefits to the issuer in that it reduces the financial risk of defaulting interest payments. This is good for the gearing ratio as well and can attract more investors.

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During 2018, its first year of operations, Pave Construction provides services on account of $152,000. By the end of 2018, cash

ASHA 777 [7]

The adjustment for noncollectable accounts on December 31, 2018:

Debit Bad Debts Expense $13,800

Credit Allowance for Doubtful Account $13,800

Explanation:

In Pave Construction, 2018 is the first year of operations. The company provides services on account of $152,000.

By the end of 2018, cash collections on these accounts total $106,000.

At the end of 2018, Accounts Receivable (the uncollected accounts) has debit balance of $46,000 ($152,000 - $106,000 = $46,000)

Pave estimates that 30% of the uncollected accounts will be bad debts

Bad Debts Expense = 30% x $46,000 = $13,800

The adjusting entry to record the bad debts expense will be:

Debit Bad Debts Expense $13,800

Credit Allowance for Doubtful Account $13,800

3 0

3 years ago

Which of the following would be considered an abiotic factor in an ecosystem? ant, moss,stone, tree

tankabanditka [31]

Stone or tree
should be right

7 0

3 years ago

Read 2 more answers

Which of the following is an objection to relying solely on Return on Market Investment (ROMI) results?

masha68 [24]

The statement that is an objection to relying that solely on Return on Market Investment (ROMI) results is that "ROMI requires knowing what would have happened without the marketing expenditure." ROMI is the contribution to profit attributable to marketing (net of marketing spending), divided by the marketing 'invested' or risked.

4 0

3 years ago

under the direct write-off method of accounting for uncollectible accounts, bad debts expense is debited

lana [24]

Bad Debts Expense is debited when an account is determined to be uncollectible under the direct write-off method of accounting for uncollectible accounts,

Bad Debts Expense refers to the portion of account receivables that a firm has assumes not be recoverable from the debtor.

In conclusion, the Bad Debts Expense is debited when an account is determined to be uncollectible under the direct write-off method of accounting for uncollectible accounts,

Read more about Bad Debts Expense

brainly.com/question/25229686

3 0

2 years ago

You are the financial analyst at Sew Mart, an arts and crafts retail store. Your boss has asked you to review the company's fina

mario62 [17]

Answer:

1. It has worsened

2. Yes (refer details below)

3. Refer details below

Explanation:

1. Performance

The performance of the company over the last three years has worsened as indicated by declining sales and decreasing current ratios impacting profitability and liquidity of the company.

2. Concerns

One of the most important concern for the company is its declining sales. It shows that the products are not competitive. Current ratios indicates liquidity crisis since they are decreasing.

3. Recommendations

The company's turnover ratio is high, which may indicates payments are being received timely, and hence the co. should take advantage of that

Low inventory turnover, on the other hand, indicates weaker sales and declining demand for a company’s products which is corroborated by the declining sales trend, the co. must increase its sales, launch new products, advertise aggressively.

8 0

3 years ago