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meriva
3 years ago
6

The ideal measure of short-term receivables is the discounted value of the cash to be received in the future. Failure to follow

this practice usually does not make the statement misleading because Question 12 options: Most short-term receivables are not interest-bearing The amount of the discount is not material The allowance includes a discount element Most receivables can be sold to a bank or factor
Business
1 answer:
Sladkaya [172]3 years ago
3 0

Answer: The amount of the discount is not material.

Explanation:

Short-term receivables as the term implies, are short term which means that they are to be received within the period/ year. When discounted therefore, the value will more or less be the same because the discounting period will be so small.

Whatever the difference between the discounted value and the original value is, it will most probably not be material enough for ignoring the practice mentioned to be an issue.

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Data for Hugh’s Corporation is provided below. Hugh’s recently acquired some risky assets that caused its beta to increase by 30
I am Lyosha [343]

Answer:

The stock's new expected rate of return is 14%

Explanation:

Ke=Rf+beta(Mrp-Rf)

Ke is the cost of capital is 10.20%

Rf i the risk free rate which is unknown

beta is 1.00

(Mrp-Rf) is the market risk premium at 6%

10.20%=Rf+1.0(6%)

10.20%=Rf+6.0%

Rf=10.20-6.00%

Rf=4.20%

Beta for the risky asset is 1.00*130%=1.3

New risk rate is the old rate plus inflation rate of 2.00%

new risk free=4.2%+2%=6.2%

The expected return on the new asset is computed thus:

Ke=6.2%+1.3(6%)

Ke=6.2%+7.8%

Ke=14%

3 0
2 years ago
________ costs are costs that limit the occurrence of defects and imperfections. prevention failure process assessment appraisal
ddd [48]
<span>Process costs are costs that limit the occurrence of defects and imperfections. Process costing is an accounting methodology that traces and accumulates direct costs, and allocates indirect costs of a manufacturing process. ... It is a method of assigning costs to units of production in companies producing large quantities of homogeneous products.</span>
7 0
3 years ago
If the police want to enter a home to find evidence, what must they request?
777dan777 [17]

Answer: warrant

Explanation:

4 0
1 year ago
Which of the following is a correct statement? Multiple Choice Writing off an uncollectible account under the allowance method d
jok3333 [9.3K]

Answer:

Estimating un-collectible accounts expense improves the matching of revenues and expenses.

Explanation:

When uncollectibles are recorded through allowance method then, bad debts expense is provided, which reduces net income. But at the time of writing off only the allowance and accounts receivables account is affected and not the net income.

When direct method is used then also the net income gets reduced, as bad debt expense and accounts receivables is affected.

And as provided in first para, when estimating and creating the allowance for bad debts, it affects net income, and it also represents the true and fair view of expenses and income.

Thus, statement c is correct.

4 0
3 years ago
Shirley’s and Son have a debt-equity ratio of .60 and a tax rate of 35 percent. The firm does not issue preferred stock. The cos
ikadub [295]

Answer:

d. 8.2%

Explanation:

The computation of the WACC is shown below:

= Weightage of debt × cost of debt × ( 1- tax rate) + (Weightage of  common stock) × (cost of common stock)

where,  

Weighted of debt = Debt ÷ total firm

= (0.60 ÷ 1.60)

= 0.375

And, the weighted of common stock = (Common stock ÷ total firm)

                                                              = 1 ÷ 1.60

                                                              = 0.625  

The total firm is

= 0.60 + 1

= 1.60

Now put these values to the above formula  

So, the value would equal to

= (0.375 × 8%) × ( 1 - 35%) + (0.625 × 10%)

= 1.95% + 6.25%

= 8.20%

8 0
3 years ago
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