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Sliva [168]
2 years ago
5

Explain how maintaining a provision for doubtful debts is an application of the principle of Matching

Business
1 answer:
erica [24]2 years ago
4 0

Answer: The Matching Principle says that we should recognize expenses in the same period that it has helped generate revenue. Thus, recognizing an allowance for doubtful debts for the year resulting from sales would satisfy that principle.

Explanation:

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How has tobacco use changed over the last few decades?
Levart [38]
It has significantly decreased


3 0
3 years ago
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Diversification is most effective when security returns are _________. a. high b. negatively correlated c. positively correlated
Y_Kistochka [10]

Answer: Option B  

                       

Explanation: In simple words, diversification refers to the process of allocating capital in different investments to reduce the overall risk of the investment portfolio.

Therefore, analyst tries to make portfolio in such a way that securities will be negatively correlated. If two securities are negatively correlated then the decrease of one will lead to proportionate increase of others.

This ensures that the investors money will not be depreciated but at the same time the potential for abnormal returns also decreases.

3 0
3 years ago
When making a decision, only relevant items are included in the analysis of the alternatives when using ______.
sergeinik [125]

Answer:

Explanation:

When making a decision, irrelevant items are included in the analysis in both alternatives when using: the total cost approach only.

7 0
2 years ago
Suppose the economy only produces three goods: bread, laptops, and movies. Calculate the CPI of 2008, using 2004 as the base yea
arsen [322]

Answer:

Most of the question is missing, so I looked for a similar one and found the attached image.

CPI = (current year price × base year quantity) / (base year price × Base year quantity)

CPI for bread in current year = [($1.50 × 2,000) / ($1 × 2,000)] x 100 = 150

CPI for laptops in current year = [($1,500 × 100) / ($2,000 × 100)] x 100 = 75

CPI for movies in current year = [($7 × 50) / ($5 × 50)] x 100 = 140

CPI for current year = (CPI for bread x weight of bread) + (CPI of laptops x weight of laptops) + (CPI of movies x weight of movies) = (150 x $2,250/$227,530) + (75 x$225,000/$227,530) + (140 x $280/$227,530) = 1.48 + 74.17 + 0.17 =75.82

5 0
3 years ago
What are the sources of pressure on firms such as frito-lay to reduce their environmental footprint? 2. identify the specific te
andriy [413]

The sources of pressure are from:

Regulation -government and legislative changes that focus on promoting environmental changes

Resources -natural and other resources are limited and conservation will help save money

Social/reputation-being environmentally conscious gives customers positive feelings about a company

8 0
3 years ago
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