Answer:
The Journal entries are as follows:
(a)
Bad Debt Expense A/c Dr. $440
To Allowance for Doubtful Accounts $440
(To record the bad debts)
Workings:
Bad Debt Expense = 1% of Total revenue
= 0.01 × $44,000
= $440
(b)
Bad Debt Expense A/c Dr. $439.34
To Allowance for Doubtful Accounts $439.34
(To record the bad debts)
Workings:
Bad Debt Expense = 2% of accounts receivable
= 0.02 × $21,967
= $439.34
Answer:
Using the weighted average method, the equivalent units produced by the department were:
= 8,760 units.
Explanation:
a) Data and Calculations:
Units Conversion
Ending inventory 1,560
Units completed 8,370
Units available 9,930
Beginning inventory 1,470 35%
Additional units started 8,460
Equivalent units of production:
Units completed 8,370 8,370 (100%)
Ending inventory 1,560 390 (25%)
Equivalent units of production 8,760
Answer:
A firm always has a competitive disadvantage when its return on invested capital is:_________
D. below the industry average.
Explanation:
A firm's competitive disadvantage shows when the return on investment is below the industry average. For instance, let us assume that Niposte, Inc. operates in the paper milling industry and that its return on investment of 10% falls below the industry average of 15%, then one can conclude that Niposte, Inc. is not favored in this industry. The cause of such a situation for Niposte, Inc. may be that the ability of its management to turn revenue into profits for stockholders is hampered with excessive costs. This is because the return on investment is a profitability ratio that shows how Niposte, Inc. and its competitors are performing in terms of generating profit from revenue through efficient management of operating costs.
Answer:
The correct answer is letter "C": increase; remain unchanged.
Explanation:
Externalities are the effect by which third parties are affected by the actions of others even if the third party does not have to do with operation s of the entity causing the harm. The typical example of an externality is related to companies' pollution. Governments are more than likely to impose taxes on such organizations. Not to affect their profits and to keep their production at the same level, those companies raise the price of their products affecting the consumer eventually.
Then, <em>imposing levies on carbon will rise the price of carbon goods keeping the quantity produced at the same rate.</em>
Answer:
This statement about finance is true.
Explanation:
Finance can be defined as the study of money management and activities related to it. It is concerned with allocation of assets and liabilities. It can categorized into three types, public, personal and corporate.
Studying finance is important for business students, irrespective of their majors as finance is crucial part of any business and plays a very vital role in the working of any organization. Finance lies at the core of the business decision making. It is thus necessary to understand the concept of finance.
Also, to all individuals, knowledge of finance is helpful as it is involved in our daily lives, in paying our bills and managing our taxes or in loans and mortgages.
