<span>When a company uses the allowance method to measure bad debts, </span><span>the amount of bad debts expense is estimated at the end of the accounting period.
The allowance method is used when adjusting accounts receivable on the balance sheet. This refers to amounts that have not been collected yet, such as bad debt.
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Answer:
Their combined production should be 20 clothes and 12 wines.
Explanation:
<u>Argentina's opportunity cost to produce 1 unit of cloth = 0.1 wine</u>
Argentina's opportunity cost to produce 1 unit of wine = 10 clothes
Chile's opportunity cost to produce 1 unit of cloth = 0.5 wine
<u>Chile's opportunity cost to produce 1 unit of wine = 2 clothes</u>
Since Argentina' opportunity cost to produce clothes is lower, then it should specialize int he production of clothes. While Chile should specialize in the production of wine. Their combined production should be 20 clothes and 12 wines.
Answer:
Financial picture
Explanation:
The phrases is suitable because An income statement will give a general picture for stakeholders regarding the company's financial condition in the past year.
it consist of several important financial information that might influence investors to either put their money into the businesses or simply abandoned it. Such as how much income that the company able to generate, the amount of expenses that the company have to pay for the operation, how much of the income is liquid, etc.
Answer:
1. - $ 80,000
2. - $ 80,000
3. - $ 0 - No effect
Explanation:
1. Assets
- <em>80,000</em> ( pay loan ) - decrease
2. Liabilities
- 80,000 ( loan from <em>+</em><em> 80,000 </em> to <em>0</em> ) - decrease
3. Stockholders Equity: no change, as there was not result ( profit/loss ) nor shareholder contribution/withdrawal
Answer:
Blume's formula combines the geometric and arithmetic means of an asset to be able to predict its returns in a given period.
The formula is;
<em>= Geometric Mean*(T-1)/(N-1) + Arithmatic Mean *(N-T)/(N-1)
</em>
Where;
T = Period in question
N = Total period
10 years
= 8.3%*(10-1)/(90-1) + 10.3%*(90-10)/(90-1)
= 10.1 %
25 years
= 8.3%*(25-1)/(90-1) + 10.3%*(90-25)/(90-1)
= 9.76%
30 years
= 8.3%*(30-1)/(90-1) + 10.3%*(90-30)/(90-1)
= 9.65%
