the amount of partial worthlessness on a nonbusiness bad debt is only deducted upon final settlement of the debt.

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Answer 1

The amount of partial worthlessness on a nonbusiness bad debt is only deducted upon final settlement of the debt is true statement.

A sum of money that a creditor must write off as a result of a debtor's default is referred to as a bad debt. A charge-off is recorded when a creditor has a bad debt on their books that becomes uncollectible. Since there is always a possibility that payment will not be collected, bad debt is a contingency that all businesses that provide credit to customers must account for. These substances can gauge the amount of their receivables might become uncollectible by utilizing either the records receivable (AR) maturing strategy or the level of deals technique.

There are two ways that businesses must account for expenses related to bad debt. The first is the direct write-off method, in which accounts are written off when they are discovered to be uncollectible. Even though this method records the exact amount for accounts that have been determined to be uncollectible, it does not follow GAAP or the matching principle that is used in accrual accounting.

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Complete question:

The amount of partial worthlessness on a nonbusiness bad debt is only deducted upon final settlement of the debt. True or False.


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which ebusiness tool plays a crucial role in getting site visitors to view more than just the home page by providing clear navigation choices?

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The ebusiness tool that plays a crucial role in getting site visitors to view more than just the home page by providing clear navigation choices is a website's navigation menu.

The ebusiness tool that plays a crucial role in getting site visitors to view more than just the home page by providing clear navigation choices is a website's navigation menu. The navigation menu is the roadmap that directs visitors to different pages on the website and helps them find the information they are looking for.
A well-designed navigation menu makes it easy for visitors to access different sections of a website, and it should be intuitive, consistent, and easy to use. It should also be visually appealing and complement the overall design of the website.
The navigation menu can have a significant impact on the user experience and can make the difference between a visitor exploring multiple pages on the website or leaving after only viewing the home page. A clear and concise navigation menu can increase engagement, reduce bounce rates, and improve overall conversion rates.
In summary, a website's navigation menu is a critical ebusiness tool that plays a crucial role in providing clear navigation choices for site visitors and encouraging them to explore different pages on the website.

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Due to an international financial crisis, Canada experiences a significant inflow of funds from other countries. Explain the effect that this inflow of funds will have on the following :
(a) The international value of the Canadian dollar
(b) Canadian net exports
(c) The real interest rate in Canada
(d) The level of investment in Canada

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(a) The international value of the Canadian dollar: The significant inflow of funds into Canada due to the international financial crisis would generally lead to an appreciation of the Canadian dollar.

As more funds are coming into the country, the demand for the Canadian dollar increases, which drives up its value in international currency markets. This means that the Canadian dollar would strengthen relative to other currencies.
(b) Canadian net exports:
The inflow of funds into Canada could have a negative impact on Canadian net exports. When the Canadian dollar appreciates, it becomes more expensive for foreign buyers to purchase Canadian goods and services. This can lead to a decrease in demand for Canadian exports, potentially reducing Canadian net exports.
(c) The real interest rate in Canada:
The influx of funds into Canada can potentially lower the real interest rate. As foreign funds flow into the country, they increase the supply of loanable funds available in the domestic financial market. This increased supply can exert downward pressure on interest rates, including the real interest rate, which accounts for inflation. Lower real interest rates can stimulate borrowing and investment in the country.
(d) The level of investment in Canada:
The significant inflow of funds can lead to an increase in the level of investment in Canada. With more funds available, businesses and individuals have greater access to capital for investment purposes. Lower interest rates resulting from the inflow of funds can also incentivize borrowing for investment, further boosting the level of investment in Canada. This increased investment can have positive effects on economic growth and productivity in the country.

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Risk that can be eliminated through diversification is called _____ risk.A. uniqueB. firm-specificC. diversifiableD. all of the above

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The risk that can be eliminated through diversification is called diversifiable risk. Therefore, the correct option is C. diversifiable.

By diversifying a portfolio, investors can reduce the impact of specific risks associated with individual investments. This is because different investments may have different risk factors, and their performance may not be perfectly correlated. By spreading investments across various assets or securities, the negative impact of a poorly performing investment can be offset by the positive performance of other investments in the portfolio.

Diversifiable risk is also known as unsystematic risk or specific risk because it pertains to risks that are specific to individual investments or companies. It is the risk that can be diversified away by adding more assets with low or negative correlations to each other.

The correct option is C.

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Louise Chen bought a 5-year zero-coupon bond at 78.1198. The market is relatively volatile, and she is considering rebalancing her portfolio. The yield of the bond has increased 50 bps after her purchase and remains constant afterward. How much has the bond price decreased?
O A. 3.71
O B. 1.88
O C. 0.24

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The closest value to 1.95 is 3.71 (option A). The bond price has decreased by approximately 3.71.

To calculate the decrease in bond price, we need to use the bond's duration and the change in yield. However, since this is a zero-coupon bond, its duration is equal to its maturity.

First, let's calculate the change in yield in decimal form:

Change in yield = 50 bps / 10000 = 0.005

Next, we can use the modified duration formula to determine the percentage change in bond price:

Percentage change in bond price = (-1) * duration * change in yield

Since the bond has a 5-year maturity, the duration is also 5 years:

Percentage change in bond price = (-1) * 5 * 0.005 = -0.025

Finally, we can calculate the actual decrease in bond price:

Decrease in bond price = Percentage change in bond price * Initial bond price

Decrease in bond price = -0.025 * 78.1198 ≈ -1.953

Rounding to the nearest two decimal places, the bond price has decreased by approximately 1.95. However, since the answer choices provided do not match this value exactly, it is likely that the answer is rounded differently in the answer choices.

Among the given options, the closest value to 1.95 is 3.71 (option A).

Therefore, option A, 3.71, is the closest approximation of the decrease in the bond price.

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all humans possess _____________, and their possession of these thoughts/feelings often lead customers to make decisions in predictably irrational ways.

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All humans possess cognitive biases. Cognitive biases refer to systematic errors in thinking that can influence people's judgments and decision-making processes.

These biases are inherent in the human brain and are often a result of mental shortcuts and heuristics that the brain uses to make quick decisions. The possession of these biases can lead customers to make decisions in predictably irrational ways because their thought processes are not entirely rational or objective. Instead, their judgments are influenced by these biases, which can lead to errors in judgment, flawed decision-making, and potentially poor choices. Some common cognitive biases include confirmation bias, availability bias, and anchoring bias, among others. Understanding these biases and how they can influence people's decisions is critical for businesses looking to create effective marketing strategies and increase customer engagement.

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are associated with quality problems that occur at the customer site. These costs can be particularly damaging because customer faith and loyalty can be difficult to regain. They include everything from customer complaints, product returns, and repairs to warranty claims, recalls, and even litigation costs resulting from product liability issues. A final component of this cost is lost sales and lost customers. For example, manufacturers of lunch meats and hot dogs whose products have been recalled due to bacterial contamination have had to struggle to regain consumer confidence. Other examples include auto manufacturers whose products have been recalled due to major malfunctions such as problematic braking systems and airlines that have experienced a crash with many fatalities. External failure can sometimes put a company out of business almost overnight.
Companies that consider quality important invest heavily in prevention and appraisal costs in order to prevent internal and external failure costs. The earlier defects are found, the less costly they are to correct. For example, detecting and correcting defects during product design and product production is considerably less expensive than when the defects are found at the customer site

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External failure costs are associated with quality problems that occur at the customer site. These costs can negatively impact customer loyalty and trust, as regaining their confidence can be challenging. Examples of external failure costs include customer complaints, product returns, repairs, warranty claims, recalls, and litigation costs.

The costs associated with quality problems that occur at the customer site can have a major impact on a company's customer loyalty. These costs include everything from customer complaints to product recalls and even litigation costs. When customers experience issues with a product, it can be difficult to regain their trust and loyalty. This can result in lost sales and lost customers, which can be particularly damaging. However, companies that prioritize quality invest in prevention and appraisal costs to prevent these external failure costs. By detecting and correcting defects early on, companies can avoid costly customer complaints and recalls, and ultimately maintain their customer loyalty. Companies that prioritize quality invest in prevention and appraisal costs to minimize internal and external failure costs, as detecting and correcting defects early on is less expensive than addressing them at the customer site.

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Which of the following definitions best describes an aging report?-A record of all unpaid patient accounts, organized by date of service or date of first bill-A medical records database organized by patient age-A billing statement that can be sent to a patient monthly-A summary of a patient's bodily function breakdown due to aging

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An aging report is a record of all unpaid patient accounts that are organized by the date of service or the date of the first bill.

This type of report is typically provided by a medical billing office and helps to identify and track unpaid accounts. It also helps the billers understand how long each account has remained unpaid and potentially identify any patterns which may be causing payment delays.

Additionally, aging reports are useful for financial forecasting as they provide insight into when to expect payment and assist in creating budgets, as well as helping to streamline payment processes. Aging reports are important for ensuring that bills are paid in a timely manner and improving overall financial health.

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What advertising idea would be the best to help the Early Riser Bread Company gain more sales?Select an option from the choices below and click Submit.Aim the advertisement towards kids with a focus on the different types of bread the company has to offer.Aim the advertisement towards parents with a focus on increasing brand awareness and preference.Aim the advertisement towards kids with a focus on increasing brand awareness and preference.

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Based on the given options, the best advertising idea to help the Early Riser Bread Company gain more sales would be to aim the advertisement towards parents with a focus on increasing brand awareness and preference.

While targeting kids with a focus on the different types of bread may be appealing, parents are typically the decision-makers when it comes to grocery purchases, including bread. By directing the advertisement towards parents, the company can increase brand awareness and preference among the individuals who are most likely to make the purchasing decisions for their families.

By highlighting the benefits and qualities of Early Riser Bread in the advertisement, such as its taste, quality, nutritional value, or any unique selling points, the company can attract the attention and interest of parents who are looking for healthy and delicious bread options for their households. This approach recognizes the influence parents have over purchasing decisions and increases the likelihood of generating more sales for the Early Riser Bread Company.

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T/F sometimes advertising does not appear to be about price, quality, or availability.

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The statement" Sometimes advertising is focused on promoting a certain image or lifestyle, rather than solely on the price, quality, or availability of a product or service" is True.

In certain instances, advertising prioritizes the promotion of a particular image or lifestyle, rather than merely emphasizing factors such as price, quality, or availability of a product or service.

This approach to advertising is frequently adopted by luxury brands or companies aiming to shape a specific perception of their brand within the minds of consumers.

Instead of solely highlighting the practical aspects of their offerings, these companies strategically design their advertisements to evoke aspirational or desirable qualities associated with their products.

By crafting a compelling narrative and cultivating an aura of exclusivity or desirability, these brands seek to establish an emotional connection with consumers, influencing their perceptions and fostering a sense of identification with the brand's identity and values.

Therefore, the  statement" Sometimes advertising is focused on promoting a certain image or lifestyle, rather than solely on the price, quality, or availability of a product or service" is True.

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Candlyicious, a candy show in Dubai expects the following sales and material payments for the period January till May of the coming year (all numbers are in thousands): Sales Material Payments January BD 14,000 BD 18,000 February 30,000 21,000 March 46,000 19,100 April 22,000 22,400 May 18,000 14,000 The company notes that historically 30% of sales are for cash, 40% are collected one month after the sale, 30% are collected in the second month after the sale. Material payments are paid in the same month of incurrence. Labor expenses are 5% of the month's sales, Rent payments are BD 1,200 per month. Capital investment of BD 25000 is expected in May. The firm's ending cash balance in February was BD 2000, and its minimum required cash balance is BD 2,500. Compute Candylicious' Cash Receipts (2 marks) -Cash Payments (2 marks) and Net Cash Flow (1.5 mark) for March April and May Cash Receipts March April May Total cash receipts (2 marks) Sare All Answe Click Save and Submit to save and submit. Click Save All Answers to save all answers. May 18,000 14,000 The company notes that historically 30% of sales are for cash, 40% are collected one month after the sale, 30% are collected in the second month after the sale. Material payments are paid in the same month of incurrence. Labor expenses are 5% of the month's sales. Rent payments are BD 1,200 per month. Capital investment of BD 25000 is expected in May. The firm's ending cash balance in February was BD 2000, and its minimum required cash balance is BD 2,500. Compute Candylicious' Cash Receipts (2 marks) -Cash Payments (2 marks) and Net Cash Flow (1.5 mark) for March April and May. Cash Receipts March April May Total cash receipts (2 marks) Cash Payments March Total payments (2 marks) Candlyicious Net Cash Flow (Cash Budget) March Net Cash flow (1.5 marks)) Click Save and Submit to save and submit. Click Save All Answers to save all answers. April April May May

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Candylicious' cash receipts for March, April, and May are BD 13,800, BD 22,000, and BD 15,200, respectively. The total cash receipts for the three months amount to BD 51,000.

To calculate the cash receipts, we take into account the historical sales collection percentages. For March, 30% of sales are collected as cash, which is BD 4,200 (30% of BD 14,000). For April, 40% of sales are collected one month after the sale, which is BD 12,000 (40% of BD 30,000). For May, 30% of sales are collected in the second month after the sale, which is BD 5,400 (30% of BD 18,000). The total cash receipts for the three months is BD 51,000 (BD 4,200 + BD 12,000 + BD 5,400).

Candylicious' cash payments for March, April, and May are BD 24,100, BD 24,600, and BD 41,400, respectively. The total cash payments for the three months amount to BD 90,100.

For cash payments, we consider the material payments, labor expenses, rent payments, and capital investment. Material payments are paid in the same month of incurrence, so for March, April, and May, the payments are BD 19,100, BD 22,400, and BD 14,000, respectively. Labor expenses are 5% of the month's sales, resulting in BD 700, BD 1,500, and BD 900 for March, April, and May, respectively. Rent payments are constant at BD 1,200 per month. There is a capital investment of BD 25,000 expected in May. The total cash payments for the three months is BD 90,100 (BD 19,100 + BD 22,400 + BD 14,000 + BD 700 + BD 1,500 + BD 900 + BD 1,200 + BD 25,000).

The net cash flow for March, April, and May is BD -10,300, BD -2,600, and BD -26,200, respectively. The total net cash flow for the three months is BD -39,100.

The net cash flow is calculated by subtracting the cash payments from the cash receipts for each month. For March, the net cash flow is BD -10,300 (BD 13,800 - BD 24,100). For April, the net cash flow is BD -2,600 (BD 22,000 - BD 24,600). For May, the net cash flow is BD -26,200 (BD 15,200 - BD 41,400). The total net cash flow for the three months is BD -39,100 (BD -10,300 + BD -2,600 + BD -26,200).

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a report must be reviewed at least once for typos or mechanical errors. True or False

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True. A report must be reviewed at least once for typos or mechanical errors before it is submitted. This is important in order to ensure that all of the information contained in the report is accurate and correct.

Typing errors can severely alter the meaning of any given piece of information. Additionally, erroneous grammar or punctuation can create confusion and mislead your readers, causing them to draw conclusions that aren’t supported by your actual research.

Therefore, it’s essential that these be caught and corrected during the review process. A grammatically correct and typo-free report reflects positively on the author or organization and can be crucial to the credibility of the report.

Additionally, reviewing and correcting errors before submitting the final report help save time and money, as well as embarrassment from later revising the report to correct errors.

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Recognized limitations of financial statement analysis include each of the following except:a. companies in the same industry using different accounting methodsb. inflationc. different levels of profitability between companiesd. difficulty of classifying by industry conglomerates

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Option (c), The recognized limitations of financial statement analysis include all of the options except different levels of profitability between companies.

Financial statement analysis has limitations such as companies in the same industry using different accounting methods, inflation affecting the comparability of financial data, and the difficulty of classifying industry conglomerates. However, different levels of profitability between companies are not a limitation of financial statement analysis, as this is a natural occurrence within competitive industries and the analysis itself helps to identify and understand these differences.

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some costs cannot be directly related to particular revenues but are incurred to obtain benefits that are exhausted in the period in which the costs are incurred. an example of such a cost is

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One example of a cost that cannot be directly related to particular revenues but is incurred to obtain benefits that are exhausted in the period in which the costs are incurred is advertising expenses.

Advertising expenses are incurred to promote a business or its products or services, but it is difficult to directly tie them to specific revenues. However, advertising is necessary to create brand awareness and attract customers, which ultimately leads to revenue generation.

Other examples of such costs include research and development expenses, employee training costs, and maintenance expenses for equipment and facilities. These costs are necessary to keep a business running smoothly and ensure its long-term success, but their benefits are not immediately visible in terms of revenue.

In accounting, these costs are typically classified as operating expenses and are deducted from revenues to calculate the net income of a business. While they may not be directly tied to revenue generation, they are essential for a business to maintain its competitive edge and remain profitable in the long run.

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What did the court rule on appeal in Alfonso Candela v. Port Motors, Inc., the case in the textbook in which the plaintiff sued the defendant for breach of warranty of title, claiming that he was sold a stolen car?
Multiple Choice
a. That the defendant passed good title as long as the defendant did not know that the car was stolen
b. That the defendant passed voidable title as long as the defendant did not know that the car was stolen
c. That a defendant selling stolen goods, regardless of good faith, can never pass a voidable or good title to the buyer
d. That a defendant selling stolen goods can pass good title to a buyer as long as the buyer and seller were innocent and not in collusion
e. That a defendant selling stolen goods does not pass good title, but the risk of loss is on the buyer

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The  court rule on appeal is  that a defendant selling stolen goods, regardless of good faith, can never pass a voidable or good title to the buyer. This correct answer is option (c).

In the case of Alfonso Candela v. Port Motors, Inc., the plaintiff sued the defendant for breach of warranty of title after discovering that the car he had purchased was stolen. The court ruled on appeal that a defendant selling stolen goods, regardless of good faith, cannot pass a voidable or good title to the buyer.This ruling is based on the legal principle that a person cannot transfer a better title than they possess. If the defendant obtained the car through theft, they never had legal ownership or proper title to the vehicle.

Therefore, the defendant cannot transfer ownership or good title to the buyer, even if the buyer was innocent and unaware of the theft.The court's decision in this case ensures that buyers are protected from purchasing stolen goods unknowingly. It places the responsibility on the seller to ensure they have legal ownership and proper title before transferring the goods to a buyer. If a buyer unknowingly purchases stolen goods, they may not acquire legal ownership, and the risk of loss ultimately falls on the buyer rather than the innocent seller. Hence option (c) is the correct answer.

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concerning exchange rate forecasting, ____ involves the use of historical exchange rate data to estimate future values, while ignoring the economic determinants of exchange rate movements.

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Concerning exchange rate forecasting, technical analysis involves the use of historical exchange rate data to estimate future values, while ignoring the economic determinants of exchange rate movements.

Technical analysis is a methodology used in exchange rate forecasting that focuses on analyzing past price and volume data to predict future price movements.

This approach is based on the idea that historical price trends and patterns can provide insights into future market behavior.
Technical analysts use various tools and techniques, such as charts and indicators, to identify patterns in the exchange rate data.

They may also use mathematical models and algorithms to generate forecasts based on historical patterns.

Technical analysis is often used by traders and investors to make short-term decisions on when to buy or sell currencies.

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Which of the following can affect a firm's sustainable rate of growth?I. Asset turnover ratioII. Profit marginIII. Dividend policyIV. Financial leverageA. III onlyB. I and III onlyC. II, III, and IV onlyD. I, II, and IV onlyE. I, II, III, and IVF. None of the above.

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The correct answer is D. I, II, and IV only.

All three factors - asset turnover ratio, profit margin, and financial leverage - can affect a firm's sustainable rate of growth. Here's an explanation of each factor:

I. Asset turnover ratio: This ratio measures how efficiently a company utilizes its assets to generate sales revenue. A higher asset turnover ratio indicates that the company is using its assets more effectively to generate sales, potentially leading to higher growth rates.

II. Profit margin: Profit margin is the ratio of net income to sales revenue, indicating the percentage of revenue that translates into profit. A higher profit margin allows a firm to retain more earnings, which can be reinvested for growth. A higher profit margin generally supports sustainable growth.

IV. Financial leverage: Financial leverage refers to the use of debt or borrowed funds to finance a company's operations and investments. By leveraging debt, a company can amplify its returns on equity. However, excessive financial leverage can also increase financial risk. Managing financial leverage effectively can impact a firm's sustainable growth rate.

III. Dividend policy, mentioned in option A, does not directly affect a firm's sustainable rate of growth. Dividend policy relates to the distribution of earnings to shareholders and does not have a direct impact on the company's ability to grow.

In conclusion, options I (asset turnover ratio), II (profit margin), and IV (financial leverage) are the factors that can affect a firm's sustainable rate of growth.

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the long-term effect of exchange rate change is an important consideration in blank______ exposure.

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The long-term effect of exchange rate change is an important consideration in economic exposure.

Economic exposure refers to the risk faced by companies or individuals due to fluctuations in exchange rates that can impact their long-term financial performance. It involves assessing how changes in exchange rates can affect the competitiveness, profitability, and overall value of an entity.

When exchange rates fluctuate, the value of currencies can increase or decrease relative to each other. This can have significant implications for businesses engaged in international trade, as it directly impacts their revenues, costs, and cash flows. Companies that rely on exports or imports, have foreign operations, or engage in foreign investments are particularly exposed to economic exposure.

The long-term effects of exchange rate changes can influence various aspects of a business, such as pricing strategies, competitiveness in foreign markets, profit margins, and overall financial performance.

Therefore, considering and managing economic exposure is crucial for organizations to mitigate risks and make informed decisions to sustain their operations and profitability in a globalized economy.

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a person places $1,000 in an investment that is considered a tax shelter. because it is a tax shelter the person can expect

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When a person places $1,000 in an investment that is considered a tax shelter, there are several benefits that they can expect. First and foremost, tax shelters allow individuals to reduce their taxable income, which can result in significant tax savings.

This is because contributions to tax-sheltered investments are typically made before taxes are applied, allowing investors to defer taxes until a later date. Additionally, tax shelters can also provide a way to earn tax-free income, as long as the investments remain within the shelter. This can be particularly beneficial for individuals who are in a higher tax bracket, as it can help them to minimize their overall tax liability. Overall, investing in tax shelters can be a smart financial move for many individuals, as it can provide both short-term and long-term tax benefits that can help them to maximize their returns and minimize their tax burden.

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According to the moderate view of capital costs and financial leverage, as the use of debt financing increases: a. the cost of capital continuously increases b. there is an optimal level of debt financing the cost of capital remains constant the cost of capital continuously decreases c. d.

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According to the moderate view of capital costs and financial leverage, the cost of capital remains constant as the use of debt financing increases up to an optimal level. Beyond this optimal level, the cost of capital starts to increase.

The moderate view of capital costs and financial leverage suggests that there is an optimal level of debt financing for a company. Initially, as a company increases its use of debt financing, the cost of capital remains constant or may even decrease. This is because debt is typically less expensive than equity financing, and using debt can have a positive impact on a company's overall capital structure.

However, as the company continues to increase its reliance on debt, there comes a point where the cost of capital starts to rise. This is because excessive debt can lead to higher interest payments, increased financial risk, and potential limitations on future borrowing capacity. As a result, the cost of capital increases beyond the optimal level.

Therefore, the moderate view suggests that there is an ideal balance between debt and equity financing, and companies should aim to find the optimal level of debt that minimizes their cost of capital. Going beyond this level can lead to higher costs and potential financial challenges.

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the separate condensed balance sheets and income statements of purl corp. and its wholly owned subsidiary, scott corp., are as follows:

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To prepare a consolidated balance sheet and income statement for Purl Corp and its wholly-owned subsidiary Scott Corp, we need to combine their financial information into a single set of financial statements.

Here are the steps to prepare consolidated financial statements based on the information provided:

1. Eliminate the Investment in Scott account from Purl's assets and add Scott's assets and liabilities to Purl's balance sheet using the acquisition method.

2. Create an Eliminations column to eliminate Purl's and Scott’s investment in each other’s stock, dividends, sales, and cost of sales. Eliminate any unrealized profits and decrease inventory carrying values for the unrealized profit.

3. Combine the amounts of the Consolidated Balance Sheet and Consolidated Income Statement.

4. Report the minority interest in the consolidated income statement under “equity in earnings of Scott.”

Here's how the consolidated balance sheet and income statement would look:

CONSOLIDATED BALANCE SHEET

December 31, 20X0

Assets  

Current assets  

Cash $140,000  

Accounts receivable (net) $165,000  

Inventories $130,000  

Total current assets $435,000  

Property plant, and equipment (net) $905,000  

Total assets $1,340,000  

Liabilities and Stockholders' Equity  

Current liabilities  

Accounts payable $255,000  

Accrued liabilities $140,000  

Total current liabilties $395,000  

Stockholders' equity  

Common stock ($10 par) $350,000  

Additional paid-in capital $10,000  

Retained earnings $985,000  

Total stockholders' equity $1,345,000  

Total liabilities and stockholders' equity $1,740,000  

CONSOLIDATED INCOME STATEMENT

For the Year Ended December 31, 20X0

Sales $2,750,000  

Cost of goods sold $2,040,000  

Gross margin $710,000  

Operating expense $410,000  

Operating income $300,000  

Equity in earnings of Scott  $60,000

Income before income taxes $360,000  

Provision for income taxes $90,000  

Net income $270,000  

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Correct Question:

The separate condensed balance sheets and income statements of Purl Corp. and its wholly owned subsidiary, Scott Corp., are as follows:

BALANCE SHEETS

December 31, 20X0

Purl Scott

Assets  

Current assets  

Cash $80,000 $60,000

Accounts receivable (net) $140,000 $25,000

Inventories $90,000 $50,000

Total current assets $310,000 $135,000

Property plant, and equipment (net) $625,000 $280,000

Investment in Scott (equity method) $390,000 ----

Total assets $1,325,000 $415,000

Liabilities and Stockholders' Equity  

Current liabilities  

Accounts payable $160,000 $95,000

Accrued liabilities $110,000 $30,000

Total current liabilties $270,000 $125,000

Stockholders' equity  

Common stock ($10 par) $300,000 $50,000

Additional paid-in capital ---- $10,000

Retained earnings $755,000 $230,000

Total stockholders' equity $1,055,000 $290,000

Total liabilities and stockholders' equity $1,325,000 $415,000

INCOME STATEMENTS

For the Year Ended December 31, 20X0

Purl Scott

Sales $2,000,000 $750,000

Cost of goods sold $1,540,000 $500,000

Gross margin $460,000 $250,000

Operating expense $260,000 $150,000

Operating income $200,000 $100,000

Equity in earnings of Scott $60,000 ---

Income before income taxes $260,000 $100,000

Provision for income taxes $60,000 $30,000

Net income $200,000 $70,000

Additional information:

On January 1, 20X0, Purl purchased for $360,000 all of Scott's $10 par, voting common stock. On January 1, 20X0, the fair value of Scott's assets and liabilities equaled their carrying amount of $410,000 and $160,000, respectively, except that the fair values of certain items identifiable in Scott's inventory were $10,000 more than their carrying amounts. These items were still on hand at December 31, 20X0. Purl's policy is to amortize intangible assets over a 10-year period, unless a definite life is ascertainable.

During 20X0, Purl and Scott paid cash dividends of $100,000 and $30,000, respectively. For tax purposes, Purl receives the 100% exclusion for dividends received from Scott.

There were no intercompany transactions, except for Purl's receipt of dividends from Scott and Purl's recording of its share of Scott's earnings.

Both Purl and Scott paid income taxes at the rate of 30%.

In the December 31, 20X0, consolidated financial statements of Purl and its subsidiary:

Present an artist’s impression of the exterior view of the building produced inwatercolour. This piece of work may be framed and hung in the café.Paper choice: Cartridge paperReason: Suitable weight for accepting watercolours, quality paper for framing andpresentation

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To present an artist's impression of the exterior view of a building produced in watercolor that may be framed and hung in a café.

Follow these steps: Materials Required: Cartridge paper (A3 or A2 size)Watercolor paintsPaint brushesPencilEraser Step-by-step procedure: Start by sketching the building's outline lightly on the cartridge paper using a pencil and eraser. Ensure that the lines are light enough that they may be erased if necessary. Paint the building with watercolor paints after sketching it. Begin by filling in the lighter areas of the building, such as the walls, roof, and windows, and then moving on to the darker areas.

Mix different colors to give it a realistic appearance, but be cautious not to overdo it. Finally, add any additional features or details, such as doors, trees, and so on, to make it look more authentic. You may even add people and vehicles to make the piece seem more lively and engaging. In conclusion, select cartridge paper because it is the appropriate weight for accepting watercolours and high-quality paper for framing and presentation.

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in the united states, ceo pay is on average ________ times as high as the pay of the average worker in the same company.

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In the United States, CEO pay is on average 320 times as high as the pay of the average worker in the same company.

The pay gap between CEOs and the average worker in the United States has been a topic of discussion and debate. According to various studies and reports, the average CEO compensation is significantly higher than that of the average worker within the same company. The ratio of CEO pay to worker pay is often measured to highlight this disparity. While the specific ratio may vary across different companies and industries, the average ratio of 320 times indicates a significant difference in compensation levels. This disparity has raised concerns about income inequality and has led to calls for greater transparency and fairness in executive compensation practices.

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now suppose that the perceived value of the bank’s assets falls by 10. what is the new value of the bank’s capital? what is the bank’s leverage ratio?

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To determine the new value of the bank's capital and its leverage ratio, we need more information about the bank's specific financials.

The leverage ratio is typically calculated by dividing the bank's total assets by its capital. Without knowing the values of the bank's total assets and its original capital, it is not possible to provide an exact answer.

However, I can explain the concept of the leverage ratio and its relationship to the bank's capital and assets.

The leverage ratio measures the proportion of a bank's capital to its total assets and serves as an indicator of the bank's financial stability and risk. It is commonly used to assess a bank's ability to absorb losses.

The formula for calculating the leverage ratio is:

Leverage Ratio = Total Assets / Capital

If the perceived value of the bank's assets falls by 10%, it means that the total assets of the bank have decreased by 10%. Let's assume the original leverage ratio was X (Total Assets / Capital).

To determine the new value of the bank's capital, we would need to calculate the decrease in the total assets and the corresponding decrease in capital.

If the capital remains the same after the decrease in assets, the new value of the bank's capital would still be the original value.

If we assume the original value of the bank's capital remains the same, the new leverage ratio would be:

New Leverage Ratio = (Total Assets - 10% of Total Assets) / Capital

However, without specific values for the bank's assets and capital, it is not possible to provide precise calculations.

It is important to consult the bank's financial statements or additional information to determine the actual values and assess the impact on the bank's capital and leverage ratio accurately.

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a speech evaluating something's work, significance, or quality is a

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A speech evaluating something's work, significance, or quality is a critique. In a critique, the speaker provides an analysis and assessment of a particular subject, such as a piece of artwork, a performance, a book, or an idea.

The purpose of the speech is to evaluate the merits, strengths, weaknesses, and overall value of the subject based on specific criteria. The speaker may discuss the subject's effectiveness, impact, originality, relevance, or any other relevant aspects to form an informed judgment. A critique typically involves providing a balanced and well-reasoned assessment, highlighting both positive and negative aspects, and offering constructive feedback or recommendations for improvement. It aims to provide an objective evaluation while offering insights and opinions to inform the audience's understanding and perspective on the subject being discussed.

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higher days of supply means _________ inventory. higher turns means ______ inventory. group of answer choices more, more less, more more, less less, less

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Higher days of supply means more inventory, while higher turns means less inventory. So, the correct option choices would be C. more, less.

Higher days of supply means more inventory. Days of supply is a measure of how many days inventory can sustain a company's sales. The higher the days of supply, the more inventory a company is holding. This can be seen as a negative aspect because it means that a company has a surplus of inventory that may not be moving as quickly as expected.

On the other hand, higher turns mean less inventory. Inventory turns is a measure of how many times inventory is sold and replaced over a certain period. The higher the inventory turns, the less inventory a company is holding, as it is selling inventory at a faster rate. This can be seen as a positive aspect because it means that a company is efficiently managing its inventory and minimizing the amount of surplus inventory it holds.

In summary, the answer is C. Higher days of supply means more inventory, while higher turns means less inventory. It is important for companies to find a balance between these two measures to ensure they are not holding too much or too little inventory.  So, the correct option choices would be C. more, less.

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T/F: existing trade routes expanded because of improved commercial practices, innovations in transportation, and the desire for valuable luxury products.

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True. Existing trade routes expanded due to improved commercial practices, innovations in transportation, and the desire for valuable luxury products.

These factors played a significant role in the growth and expansion of trade routes throughout history. Improved commercial practices, such as standardized weights and measures, enhanced trust and efficiency in trade transactions. Innovations in transportation, such as the development of ships, caravans, and later, railways, facilitated the movement of goods across long distances and opened up new trade routes. Additionally, the desire for valuable luxury products, such as spices, silk, and precious metals, drove explorations and trade expeditions to reach new markets and establish trade connections with distant regions.

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given the assumptions of a perfectly competitive industry, explain why firms operating in that industry are reluctant to invest in new technological development.What conditions would encourage research and development in competitive industries?

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In a perfectly competitive industry, firms are price takers, meaning they have no control over the market price of their product. In such an industry, all firms produce identical products and have access to the same technology.

Therefore, any investment in technological development is unlikely to give a firm a significant advantage over its competitors since all firms are operating under the same conditions. This means that firms are reluctant to invest in new technological development since it is unlikely to result in higher profits or market share.
Conditions that would encourage research and development in competitive industries include the presence of barriers to entry such as patents or unique production processes that can give firms a competitive advantage. Additionally, if firms are able to differentiate their products through technological advancements, they may be able to charge a higher price, thereby increasing profits. Furthermore, if firms collaborate with one another to share the cost of research and development, they may be more willing to invest in technological development. In summary, firms in perfectly competitive industries are reluctant to invest in new technological development since it is unlikely to give them a significant advantage over their comp etitors, but barriers to entry, differentiation, and collaboration can encourage investment in research and development.

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T/F a large boost in share price increases a firm’s equity leverage for external expansion.

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False. A large boost in share price does not directly increase a firm's equity leverage for external expansion. Equity leverage refers to the use of equity or shareholders' funds to finance a firm's activities and expansion.

An increase in share price can potentially enhance a firm's financial position by increasing the value of shareholders' equity. However, it does not automatically change the proportion of equity financing relative to debt financing.

Equity leverage can be altered through deliberate actions such as issuing new shares or repurchasing existing shares, which can affect the equity-to-debt ratio.

External expansion, such as acquiring other companies or undertaking new projects, can be financed through various means, including debt financing, equity financing, or a combination of both.

The decision to leverage equity or use other sources of financing depends on the firm's financial strategy, cost of capital, risk profile, and other factors.

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QUESTIONS if a company's days sales in receivables is 32 days what is their receivables turnover? O 1437 O 114

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The receivables turnover ratio can be calculated by dividing the number of days in a year (365) by the days sales in receivables. In this case, with a days sales in receivables of 32 days, the receivables turnover ratio is  11.41.

The receivables turnover ratio is an important financial metric that provides insight into a company's management of its accounts receivable. It indicates the number of times the company collects its average accounts receivable balance within a specific period, usually a year.

To calculate the receivables turnover ratio, we need to divide the number of days in a year (365) by the days sales in receivables.

In this case, the days sales in receivables is given as 32 days. So, the calculation would be:

Receivables turnover = 365 days / 32 days

Receivables turnover = 11.41

Therefore, the receivables turnover ratio for the company is approximately 11.41. This means that, on average, the company collects its accounts receivable approximately 11.41 times in a year.

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Here is the complete question:

If a company's days sales in receivables is 32 days what is their receivables turnover?

12.25%

14.37%

11.41%

12.57%

using the LIFO method and the inventory list below, which of the following is the cost of goods sold during July?A. $1,050B. $1,750C. $1,550D. &1,450

Answers

The cost of goods sold during July using the LIFO method is $1,550.

The LIFO (Last-In, First-Out) method assumes that the most recently acquired inventory is sold first. To determine the cost of goods sold, we need to identify the cost of the inventory sold during July. Based on the LIFO method, the cost of goods sold consists of the cost of the most recent purchases. Given that no information about specific purchases or quantities is provided, we can assume that the cost of goods sold is determined based on the most recent cost of inventory.

It's important to note that without more specific information about the inventory purchases and quantities, we can only provide an estimate based on the options provided. The actual cost of goods sold may vary depending on the specific inventory transactions and calculations.

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