Answer:
a. $180
Explanation:
Bad debt expenses is generally classified as Administrative expense and hence it is included in the expense section of the income statement before the calculation of the Net Income.
From the question it is evident that the write offs during the period were $180 and hence the expense recorded in the Income statement as bad debt expense would be $180 because they are unrecoverable for the current period.
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Answer:
D. Preferred stockholders are allocated their dividends before dividends are allocated to common shareholders.
Explanation:
Before declaring dividend on common shares, it is always necessary for the company to pay dividends on preferred shares and dividends are declared when there are sufficient profits.
Answer:
holders of financial assets with fixed money values increase their spending.
Explanation:
Answer: Degree of Operating Leverage
A Tech = 2.75
Z Tech = 3
Explanation:
As defined in question itself,
Degree of Operating Leverage = 
As here, it is provided that profit for both the companies are same amounting $4 million.
Although the fixed cost differ by $1 million.
A Tech Degree of operating Leverage = 1 +
= 2.75
Z Tech Degree of Operating Leverage = 1 +
= 3
This clearly demonstrates that A Tech will reach its break even faster than the Z Tech as the ratio of fixed cost to variable cost is lower in A tech in comparison to Z Tech.
Financial accounting, an asset is any resource owned by a business or an economic entity. It is anything that can be owned or controlled to produce value and that is held by an economic entity and that could produce positive economic value.
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