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2 years ago

Month-end & Year-end process helps to write-off bad debts.

Business

1 answer:

Katyanochek1 [597]2 years ago

5 0

Answer:

False

Explanation:

It is FALSE that Month-end and Year-end process helps to write-off bad debts.

This is because both month-end and year-end processes are processes specifically carried out to adjust all account balances to make and depict the actual financial activities of the firm. This assists the firm's management team to make a further decision, but not to just write-off bad debts.

Bad debt is written off only when a customer invoice is deemed to be uncollectible.

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The economic inefficiency of a monopolist can be measured by the A. area above marginal cost but beneath demand from the monopol

Reil [10]

Answer:

The correct answer is option D.

Explanation:

A monopoly firm is neither productively nor allocative efficient. The reason behind this is that it does not utilize the resources efficiently and produces below the socially optimal level of output.

Unlike perfect competition, which produces at the point where price equals marginal cost, a monopolist produces at the point where the price is greater than marginal cost.

This inefficiency is visible through the decrease in consumer surplus and deadweight loss. The difference between socially optimal level of output and monopoly output also represents inefficiency. The value of the goods and services that could have been made if monopolist chose to produce at a socially optimal level also shows inefficiency.

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3 years ago

Xie Company identified the following activities, costs, and activity drivers for this year. The company manufactures two types o

san4es73 [151]

Answer:

Results are below.

Explanation:

First, we need to calculate the plantwide predetermine manufacturing overhead rate:

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

total estimated overhead costs for the period= (625,000 + 900,000 + 105,000 + 175,000 + 300,000 + 75,000)

total estimated overhead costs for the period= $2,180,000

Predetermined manufacturing overhead rate= 2,180,000 / 125,000

Predetermined manufacturing overhead rate= $17.44 per direct labor hour

Now, we can allocate overhead to each product line:

Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base

Deluxe:

Allocated MOH= 17.44*2,500

Allocated MOH= $43,600

Basic:

Allocated MOH= 17.44*6,000

Allocated MOH= $104,640

6 0

3 years ago

A _________ is generally considered an appreciating asset because it may _________ in value over time.

jeka94

A house is generally considered an appreciating asset because it may increase in value over time. Appreciation is an increase in the value of an asset over time. The increase of the value of the house may occur for a number of reasons, including increased demand or weakening supply, or as a result of changes in inflation or interest rates. One example would be: the neighborhood became very famous, so the value of the houses there will increase, because the demand will increase.

8 0

3 years ago

Read 2 more answers

The deadweight loss associated with output less than the competitive level can be determined by A. subtracting the consumer surp

SSSSS [86.1K]

Answer:

C. subtracting the competitive level producer surplus from the producer surplus associated with less output

Explanation:

A deadweight loss refers to a cost to society created as a result of market inefficiency. Market inefficiency occurs when supply and demand are out of equilibrium. It is also known as excess burden.

Deadweight loss is also created due to taxes as they prevent people from purchasing things that they would otherwise as the final price of the product increases.

The deadweight loss associated with output less than the competitive level can be determined by subtracting the competitive level producer surplus from the producer surplus associated with less output

7 0

2 years ago

On March 25, 2021, Phillips Corporation purchased bonds of Atlas Corporation for $132 million and classified the securities as t

ValentinkaMS [17]

Answer:

An unrealized holding gain of $28 million in 2019.

Explanation:

At the financial year-end, the company have to reevaluate the investment to recognize the gain or loss.

If the fair value is higher than actual investment, the company gain and vice versa it lost.

In this scenario, the fair value adjustment = the valuation on 31st December – purchased value = $150 million - $132 million = $28 million.

Because this step is just an approach to record new valuation of investment, then it’s consider unrealized.

In short, Phillips Corporation should first update the fair value adjustment of $28 million on December 31 2021

4 0

3 years ago