The advantage of the allowance method of accounting for bad debts is that it identifies the specific customers who will not pay their bills.
Answer the following statement true (T) or false (F)
False
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A company with 100,000 authorized shares of $4 par common stock issued 40,000 shares at $8 . Subsequently, the company declared a 4% stock dividend on a date when the market price was $12 a share. What is the amount transferred from the retained earnings account to paid-in capital accounts as a result of the stock dividend?
a. $12,800 b. $19,200 c. $32,000 d. $48,800
The customer retention metric acts as a forward-looking metric when it measures the number of customers retained from one year to the next
Indicate whether the statement is true or false
When the trade-in allowance exceeds the carrying value of an asset exchanged, a gain is realized
Indicate whether the statement is true or false
The net present value method of evaluating proposed investments
a. measures a project's internal rate of return. b. ignores cash flows beyond the payback period. c. applies only to mutually exclusive investment proposals. d. discounts cash flows at a minimum desired rate of return.