After aging the accounts receivable, Grasso Company estimated that $5,000 will not be collected. The Allowance for Bad Debts has an existing debit balance of $750 . The adjusting entry under the aging approach would be for the amount of
a. $0; b. $750; c. $4,250; d. $5,000; e. $5,750
E
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An increase in a security's random risk should lead to an increase in its beta value
Indicate whether the statement is true or false.
You observe that a firm's ROE is above the industry average, but both its profit margin and equity multiplier are below the industry average. Which of the following statements is CORRECT?
A. Its total assets turnover must be above the industry average. B. Its return on assets must equal the industry average. C. Its TIE ratio must be below the industry average. D. Its total assets turnover must be below the industry average. E. Its total assets turnover must equal the industry average.
Yusef, age 15, is a dependent of his parents. In 2018 he earned $5,000 from a part-time job and $8,000 of interest income on bonds given him by his grandparents, resulting in taxable income of $7,650. Under kiddie tax rules, calculation of tax requires dividing taxable income between net unearned income and earned taxable income. Yusef's taxable income will be divided as follows:
A. net unearned income -$5,900 and earned taxable income -$1,750. B. net unearned income -$1,750 and earned taxable income -$5,900. C. net unearned income -$0 and earned taxable income -$7,650. D. net unearned income -$7,650 and earned taxable income -$0.