All categories

3 years ago

What does 'charge-off as bad debt' mean?

1 answer:

mote1985 [20]3 years ago

3 0

Answer: Charge off as bad debt means that the remaining amount is considers as a bad debt but it doesn't mean that you no longer owe to the amount that is not being repaid.

Explanation:

The expression "charge off" implies that the original lender has given up on being repaid by the original terms of the credit. It believes the rest of the balance to be bad debt, yet that doesn't mean you never again owe the sum that has not been repaid.

After a record is charged off by the original creditor it is typically sent to an accumulation organization. The collection agency will at that point taking an attempt to recover the rest of of the amount with additional interest and fees.

You might be interested in

Bryce often acts overly confident and daring. few people realize he is actually riddled with unconscious insecurity and self-dou

yKpoI14uk [10]

<span>This defense mechanism is called "Reaction formation", which means acting the opposite by doer what he/she truly possessed.</span>

5 0

3 years ago

The Granny Smith Company agreed to purchase the Red Delicious Company for $800,000. At the date of purchase, Red Delicious had c

BlackZzzverrR [31]

Answer:

D. record goodwill of $200,000 to be reviewed annually for impairment

Explanation:

Given:

The Granny Smith Company agreed to purchase the Red Delicious Company for $800,000.

At the date of purchase, Red Delicious had :

Current assets with a fair market value = $450,000

Non current assets with a fair market value = $750,000

Total liabilities = $600,000

Question asked:

In accounting for this transaction, Granny Smith should...............

Solution:

Here he Granny Smith Company is purchasing another company Red Delicious Company, we will have to determine the Goodwill owned by Granny Smith Company by using this formula:

Goodwill = ( C + NCI + FV ) − NA

C = Consideration transferred

NCI = Amount of non-controlling interest

FV = Fair value of previous equity interests

NA = Net identifiable assets

Net identifiable assets = Total assets - total liabilities

Total assets = current assets + non current assets

= $450,000 + $750,000 = $1200,000

Net identifiable assets = Total assets - total liabilities

= $1200,000 - $600,000 = $600,000

Goodwill = ( C + NCI + FV ) − NA

= ($800000 + 0 + 0) - $600,000

= $800000 - $600,000 = $200,000

Hence, option D is correct, record goodwill of $200,000 to be reviewed annually for impairment.

3 0

3 years ago

Your company is trying to decide which of the two following devices should be selected.

jeyben [28]

Answer:

a) Find the attached jpeg file for the cash flow diagram

b) The company should purchase Device B.

Explanation:

a) Draw cash flow diagram for each option

A project cash flow diagram is a tool that is used to present a visual representation of the cost of a project and cash it is expected to generate over a specified period of time. On the diagram, x-axis represents the year, and y-axis represents cash out flows and/or inflows.

Note: See the attached jpeg for the cash flow diagram.

b) If interest rate is 7%, which device should your company purchase?

To determine this, we compare the Net Present Value (NPV) of the 2 devices.

Note: See the attached excel file for the calculation of the NPVs of the two devices.

From the attached excel file, we have:

NPV of Device A = $230

NPV of Device B = $262

Decision: Since $262 NPV of Device B is greater than the $230 NPV of Device A, <u>the company should purchase Device B.</u>

7 0

3 years ago

A free market is a market with ___ government restrictions on how a good or service can be produced or sold and with ____

Sergio [31]

The answer is No and their choice

A free market is a market with No government restrictions on how a good or service can be produced or sold and with their choice.

What is Free market ?

The free market is an financial framework
based on supply and request with small orno government control.
It could be a outline depiction of all intentional trades that take put in a given financial environment.
Free markets are characterized by a unconstrained and decentralized arrange of courses of action through which people make financial decisions.
Based on its political and lawful rules, a country's free showcase economy may run between exceptionally huge or totally unlawful.

To know more about Free market visit:

https://brainly.in/question/11821773

#SPJ4

3 0

2 years ago

What are long-term decisions that set the direction for the entire organization called?a. Tactical b. Operational c. Directional

kvv77 [185]

Answer:

The correct answer is letter "E": Strategic.

Explanation:

Strategic decisions imply analyzing what direction is the overall company going to take in the long run. It represents the groups of decisions high-rank executives must take to conduct the operations of the firm, the resources that will be used and how they will combine those factors to reach the organization's objectives.

8 0

3 years ago