Answer:
2.97%
Explanation:
cost of shares = (NAV0 × shares) ÷ (1 - FL)
= ($39 × 1,000) ÷ (1 - 0.034)
= 40,372.67
NAV1 = NAVo (1 + investment return - expense ratio)
= $39 × (1 + 0.08 - 0.014)
= 41.574
value of shares = NAV1 × Shares
= 41.574 × 1,000
= 41,574
Return = (value of shares ÷ cost of shares) - 1
= (41,574 ÷ 40,372.67) - 1
= 2.97%
Answer: $520,000
Explanation:
A bad debt expense occurs when an economic entity which could be an individual or firm cannot collect a receivable because the said customer can't meet their obligations anymore.
The amount of bad debt expense recognized for the year will be the outstanding accounts receivable at year end multiplied by the percentage of uncollectible outstanding receivables. This will be:
= 8% × $6,500,000
= 8/100 × $6,500,000
= 0.08 × $6,500,000
= $520,000
Answer:
the amount of units that should be sold in the case when there is a zero profit is 10,000 units
Explanation:
The computation of the amount of units that should be sold in the case when there is a zero profit is given below:
No. of units to be sold is
= Fixed Cost ÷ Contribution per unit
= $200,000 ÷ $20
= 10,000 units.
hence, the amount of units that should be sold in the case when there is a zero profit is 10,000 units
Answer:
The correct answer is - Core revenue recognition principle.
Explanation:
The stipulations of an exchange transaction or other conditions related to the recovery of accounts receivable over a long period may prevent a reasonable estimate of the collectibility of such accounts. Both the term sales method and the income and cost recovery method can be used for the recognition of income and expenses, during the entire period in which collectibility is not reasonably assured.
