Bonds will be the least risky since there is no risk involved at all. Bonds give out guaranteed payments and A rated bonds will be even more secure.
The next would be property. Since property is a physical asset, the risk involved is relatively lower than stocks.
The next would be retirement plans which would typically have bonds and stocks.
The most risky would be speculative stocks.
The order from least risky to most risky would be:
1. A rated bonds
2. Property
3. Retirement plans
4. Speculative stocks
Answer:
(a) What was the total of accounts written off during the first 11 months?
bad debts written for the first 11 months = allowance for bad debt accounts January 1 balance + bad debt expense - allowance for bad debt accounts November 30 balance = $13,085 + $21,937 - $9,919 = $25,103
(b) As the result of a comprehensive analysis, it is determined that the December 31, 2010, balance of the Allowance for Bad Debts account should be $9,450. Show the adjustment required in the journal entry format.Allowance for bad debt Debit $Bad debt expenses Credit $
to determine the amount of bad debt expense that must be adjusted, we must subtract the estimated balance in December 31 from the balance in November 30 = $9,919 - $9,450 = $469. Since the November 30 amount is larger, it means that we over estimated our bad debt expense and it must be reduced:
Dr Allowance for doubtful accounts 469
Cr Accounts receivable 469
Answer:
8% and 4.8%
Explanation:
In this question, we use the Rate formula which is shown in the spreadsheet.
The NPER represents the time period.
Given that,
Present value = $1,294.54
Future value or Face value = $1,000
PMT = 1,000 × 11% = $110
NPER = 20 years
The formula is shown below:
= Rate(NPER;PMT;-PV;FV;type)
The present value come in negative
So, after solving this,
1. The pretax cost of debt is 8%
2. And, the after tax cost of debt would be
= Pretax cost of debt × ( 1 - tax rate)
= 8% × ( 1 - 0.40)
= 4.8%
Answer:
Total fixed cost $16,000
unit fixed cost for 10,000 units $1.60
Explanation:
the budget was made for 8,000 units
so the 2.00 dollars for fixed cost will be based on a production for 8,000 units
total fixed cost: 8,000 budgeted units x $2 per unit = 16,000
This is the level of fixed cost.
<u>For 10,000 units the total fixed cost should be the same.</u>
and for units it will be total cost / units of production
16,000 / 10,000 = 1.6
On unit-level it will drop by 40 cent to $1.60 from $2.00
<span>The demand curve for corn depends on what market it is needing it. If corn is needed for food for humans or for animals and if the need is normal or in addition to a current or outstanding reason makes a difference.</span>
