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3 years ago

What Is margin of safety?

Business

1 answer:

skelet666 [1.2K]3 years ago

5 0

Answer:

Margin of safety is a principle of investing in which an investor only purchases securities when their market price is significantly below their intrinsic value. ... Alternatively, in accounting, the margin of safety, or safety margin, refers to the difference between actual sales and break-even sales

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During 2021, its first year of operations, Pave Construction provides services on account of $124,000. By the end of 2021, cash

7nadin3 [17]

Answer:

The adjusting entry for uncollectible accounts on December 31, 2021:

Debit Bad debts expense $9,600

Credit Allowance for uncollectible accounts $9,600

Explanation:

During 2021, Pave Construction provides services on account of $124,000. By the end of 2021, cash collections on these accounts total $92,000.

The balance of uncollected accounts on December 31, 2021 = $124,000 - $92,000 = $32,000

Pave estimates that 30% of the uncollected accounts will be uncollectible.

Estimated uncollectible = 30% x $32,000 = $9,600

The adjusting entry for uncollectible accounts on December 31, 2021:

Debit Bad debts expense $9,600

Credit Allowance for uncollectible accounts $9,600

8 0

3 years ago

The most common type of family structure for u.s. children aged 6 to 11 is:

neonofarm [45]

Single parent household

8 0

4 years ago

According to Franks and Smallwood (2013), information has not become the lifeblood of every organization, and that an increasing

miskamm [114]

Answer:

B. False.

Explanation:

The above statement is false in that it asserts that information has not become the lifeblood of every organization. While it's true that an increasing volume of information today has increased and exchanged through the social networks and web2.0 tools like blogs, microblogs and wikisa, this further lends credence to the indispensability of information in this contemporary times.

In contrast, what Frank and Smallwood(2013) preached was that information has now become a lifeblood of every organization. This is an undisputed reality in their study and intellectual intervention. Thus, they went on give a demographic distribution of information through the use of social networks and/or web2.0 tools like blogs, microblogs, and wikisa.

6 0

4 years ago

The illegal and unethical practice of providing old (or early) investors above-average returns on their investment with funds ra

Arada [10]

Answer:

Ponzi scheme

Explanation:

Ponzi scheme is a fraud investment strategy that promises to pay a substantial sum of returns. In a Ponzi scheme, generate income for the old investor by using the money of the newest investor and this chain goes on. This is basically a fraudulent scam or investment strategy to get a significant amount of money. Ponzi scheme is similar to pyramid strategy both are based on using new investor’s fund.

6 0

3 years ago

Genesis Scents has two divisions: the Cologne Division and the Bottle Division. The Bottle Division produces containers that can

ale4655 [162]

Answer:

transfer price 3.31

Explanation:

the minimun transfer price should be equal to the marginal cost:

In this case: variable manufacturing cost + shipping cost.

variable cost 3.1

shipping cos 0.21

marginal price 3.31 = cost of produce an additional unit = transfer price

there is no additional fixed cost so this should be the transfer price.

5 0

3 years ago