of Kilometro Company:
Q: How can the company reduce the level of uncollectible accounts and increase the likelihood that…
A: Uncollectible accounts are those accounts of accounts receivables on which amount due can not be…
Q: O In the case of flat-rate write-offs on receivables, the sales tax must also be corrected. O All…
A: Production cost refers to the expenses involved while producing a certain product.
Q: What does the interest earned versus the fixed charge coverage indicate about each company? Why is…
A: The Interest Earned ratio assesses a company's capacity to fulfill its payment obligations on a…
Q: If a company incorrectly records a payment as an asset, rather than as an expense, how will this…
A: Payments are made against the goods or services received. Hence, it is recorded as an expense.
Q: What are some factors to consider in evaluating a company's ability to make payments on outstanding…
A: Company's ability to make payments on outstanding debt 1. Free Cash Flow:- cash inflow during the…
Q: Which ratio would a company most likely use to measure its ability to meet short-termobligations?B .…
A: The current ratio is a liquidity ratio that measures a company's ability to pay short-term…
Q: Which of the following methods may not be appropiate for estimating bad debt expense? a. Percentage…
A: The bad debt expense is created for the debtors which company finds that would not make the full…
Q: How does a company report deferred gross profit resulting from the use of the installment sales…
A: Definition: Installment sales method: Under the installment sales, the revenue and costs are…
Q: What are bad debts?
A: Hi Student Since there are multiple questions, we will answer only first question. If you want…
Q: Using the allowance method, is Bad Debt Expense recognized in the period in which ( a ) sales…
A: Using the allowance method, Bad Debt Expense is recognized in the period in which sales related to…
Q: What is off-balance-sheet financing? Why might a companybe interested in using off-balance-sheet…
A:
Q: e traditional 4 C’s of credit analysis, which is the ability of a company to make payments on time?…
A: 4Cs of credit are Collateral, Covenant, Capacity and character.
Q: Why does the accounting profession require the use of the allowance method of accounting for losses…
A: Step 1 Basically, the allowance method is the reporting way to report the loss of credit in books of…
Q: Which of the following methods may not be appropiate for estimating bad debt expense? a. percentage…
A: Bad debt expense means those accounts receivables that can not be collected. It depends on the…
Q: Total free assets Net free assets Unsecured liabilities with priority
A: “Since you have posted a question with multiple sub-parts, we will solve the first three subparts…
Q: Vhich method of estimating bad debts focuses on Ba tatement? percentage of sales approach ageing of…
A: Bad debt expense is the estimation of occurrence of a liability based on uncollectible accounts…
Q: QUESTIONS: 1. How much are the total free assets? 2 How much are the unsecured liabilities with…
A: The given question has more than 3 subparts so as per the policy of the company only the first 3…
Q: What are restructuring costs and where are they reported in the income statement?
A: Definition: Income statement: The financial statement which reports revenues and expenses from…
Q: Which of the following cannot be considered an expense for the business? O Cost of goods sold O…
A: Expenses of the business means all expenditures that are made in routine day to day activities of…
Q: pense and accounts receivable balance. Under different circumstances, another method is used called…
A: When there is only one large accounts receivable due from one client the direct write off method if…
Q: Entires for bad debt expense - direct write off method
A: Direct write off method is to be used when a business for invoice uncollectible
Q: t type of company would have a low receivables-collection period?
A: Step 1 The low collection time is usually more attractive than the high. Low collection time…
Q: If a company failed to record an accrued income, what would be the effects?
A: Accrued income is that income which is being earned by the business for the particular period of…
Q: What are lines of credit? From the viewpoint of a short-term creditor, why do lines of credit…
A: Financial statements: Financial statements are condensed summary of transactions communicated in the…
Q: ompany can not rely on net income as a valid measure to pay fixed charges
A:
Q: Compute the estimated settlement per peso of unsecured creditors.
A: Here to prepare the statement of affairs to know the details of the values of total assets which are…
Q: How might the different ages of firms distort comparisons of their fixed assets turnover ratios?
A: Fixed assets turnover ratio is a type of ratio analysis tool that is calculated by dividing the…
Q: What effect does collection policy have on sales, collection time, and bad-debt loss percentage
A: The company's collection policy is defined as the strategies or processes it employs to collect past…
Q: unsecured creditors with/without priority c. Estimated gain/loss on liquidation divided by total…
A: The question is related to Liquidation of companies.
Q: If a company sells its accounts receivables to a factor O a. there is a gain on the sale of the…
A: Solution: Factoring is a financial transaction thru which business sells its accounts receivables at…
Q: Can you tell whether a business can or cannot meet its obligations when it becomes due based on the…
A: Balance sheet refers to the financial statement of a company which includes asset ,liability, debt ,…
Q: Why is it advantageous for a company to finance its receivables?
A: Accounts receivable is the amount due to a firm for the use of goods and services but not yet paid…
Q: Discuss the best reason(s) for using the allowance method and give some examples of companies that…
A: The reasons for using the Allowance method are discussed hereunder : There are two methods to…
Q: What is one of the possible choices for financing a company’s operations and how do we account for…
A: A Company uses various short term, medium term, and long term sources of finance for its business…
Q: Why do companies find it convenient to alter allowance for doubtful accounts to manage earnings?
A: Allowance for doubtful Account : it is a contra assets account. Allowance for doubtful debt affects…
Q: The current ratio is useful in determining a company’s ability to pay obligations when they…
A:
Q: Which of the following statements about receivables turnover is false? Receivables turnover…
A: Ratio analysis is one of the important techniques of financial analysis. Under this analysis,…
Q: What will the company record for bad debt expense?
A:
Q: What method(s) might be used in the accounts to recorda loss due to a price decline in the…
A:
Q: This is a method of recognizing bad debts that requires a company to estimate the uncollectible…
A: Bad debts are those customers that are not going to pay their debt to the company. The direct-write…
Q: Explain why writing off a bad debt against a company's Allowance for Doubtful Accounts does not…
A: The estimated realizable value of a company's accounts receivable is not reduced by writing off a…
Q: When a large account receivable balance is due from one client it is logical to use the direct…
A: Accounts receivable (AR) is the sum owed to a business for goods or services delivered or used but…
Q: Which company indicates the strongest ability to pay interest expense as it comes due?
A: Times interest earned: the times interest earned is a ratio analysis done by the company to find the…
How much is the estimated deficiency to unsecured creditors?
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- Pitch Co. is undergoing liquidation. Infórmation on Pitch Co.. assets and liabilities is shown below: Вook value Realizable value ASSETS 1,000,000 500,000 1,300,000 Assets pledged to fully secured creditors Assets pledged to partially secured creditors 300,000 1,600,000 1,280,000 Free assets 3,100,000 2,880,000 LIABILITIES Unsecured liabilities with priority 400,000 480,000 1,000,000 1,050,000 Fully secured creditors Partially secured creditors Unsecured creditors without priority 650,000 650,000 1,400,000 3,580,000 1,400,000 3,450,000 1. What is the estimated recovery percentage of unsecured creditors without priority? а. 60% b. 75% с. 78% d. 80%Integrity Company has the following information: Unsecured creditors P460,000 Preferred creditors 220,000 Secured creditors: ABC Co., fair value of asset pledged P360,000 420,000 DEF Co., fair value of asset pledged P200,000 340,000 GHI Co., fair value of asset pledged P280,000 240,000The company also has a number of other assets that are not pledged in any way.How much should be realized from the free assets(unpledged) so that ABC Co. would receive exactly P378,000? a. P378,000 b. P198,000 c. P642,000 d. P462,000 e. P488,000Unusual income statement items Assume that the amount of each of the following items is material to the financial statements. Classify each item as either normally recurring (NR) or unusual (U) items. If unusual item, then specify if it is a discontinued operations item (DO). a. Interest revenue on notes receivable. b. Gain on sale of segment of the company's operations that manufactures bottling equipment. c.Loss on sale of investments in stocks and bonds. d. Uncollectible accounts expense. e. Uninsured flood loss. (Hood insurance is unavailable because of periodic Hooding in the area.)
- WHat is the Fixed Assets Turnover Ratio ? given Noncurrent Assets Equity securities - at fair value through other comprehensive income 8, 21 16,267,140 Due to related parties - noncurrent portion 8, 21 347,927,681 Property and equipment - net 9 6,390,497,964 Deferred tax assets 19 64,994,497 Retirement benefits asset 18 16,267,140 Other non-current assets 10, 21 30,221,963 Available for sale investment 10 - Total Noncurrent Assets 6,849,909,245 Revenue 2,104,932,423https://uagm.blackboard.com/bbcswe... https://uagm.blackboard.com/bbcsw... Answered: 23. The acco C. Loss from continuing operations d. Loss from discontinued operations с. 5. All of the following components are shown in the income statement net of applicable taxes except a. Discontinued operations b. Cumulative effect of a change in accounting principle C. Gain or loss on sales of plant assets d. Extraordinary gain of loss 6. Which of the following would not be classified as a current asset on a classified balance sheet? a. Investment securities (trading) b. Short-term investments C. Intangible assets d. Prepaid expenses 7. Which of the following is not a long-term investment? a. Stock held to exert influence on another company b. Land held for speculation C. Trademarks d. Cash surrender value of life insurance On a multiple-sten income statement gains or losses on sale of equinment wouldclassify the given items as (operating / investing / financing), share the correct classification with logical reasoning Loss on sale of asset 95780 dividend income 26000 interest income 35000 finance cost paid on debentures 12000 gain on sale of investment 45000 Depreciation on fixed assets 85000 Amortisation Expenses 110000
- An amortization schedule shows Group of answer choices A)how a company amortizes an intangible asset. b)the amount of goodwill a company will report on their balance sheet. c)a summary total of all interest paid to creditors. d)all of a company’s long-term notes payable. e)None of the aboveThe statement of realization and liquidation of Honesty Co. are as follows: P1,700,000 Liabilities not liquidated Liabilities assumed Assets to be realized Assets acquired Assets realized Assets not realized Liabilities liquidated 300,000 1,100,000 1,200,000 1,600,000 Liabilities to be liquidated Supplementary charges Supplementary credits P1,400,000 1,500,000 2,000,000 2,500,000 1,950,000 What is the beginning balance of cash account assuming that Ordinary Share Capital is P1,500,000 and deficit, ending is P400,000?amount. An entity reported the following data for the current year. What net amount in OCI that may not be recycled to profit or loss? * Net sales Cost of goods sold Selling expenses Administrative expenses P9.500,000 4,000,000 1,000,000 1,200,000 Interest expense 700,000 Gain from expropriation of land 500,000 Income tax 800,000 Income from discontinued operations Unrealized gain on equity investment at FVOCI Unrealized loss on futures contract designated as a cash flow hedge Increase in projected benefit obligation due to actuarial assumptions Foreign translation adjustment- debit Revaluation surplus 600,000 900,000 400,000 300,000 100,000 2,500,000
- One of the main differences between U.S. GAAP and IAS/IFRS is the measurement of property, plant & equipment subsequent to initial recognition. Read IAS 16 and answer the following questions. Provide a list of the references you have used to search this topic. 1) What are the accounting models accepted under IFRS for the measurement of property, plant & equipment subsequent to initial recognition? 2) How often should the company revalue its property, plant & equipment under the revaluation model? 3) How should the revaluation gains and losses be accounted for and reported in the financial statements? 4) How should any claim for compensation from third parties for impairment be accounted for? 5) How should the recoverability of the carrying amount of property, plant & equipment be accounted for?Refer to the situation described in BE 11–13. Assume that the present value of the estimated future cash flowsgenerated from the division’s assets is $22 million and that their fair value approximates fair value less costs tosell. What amount of impairment loss should C&R recognize if the company prepares its financial statementsaccording to IFRS?Which of the following is not a required disclosure regarding intangible assets that are amortized for each period a company presents a balance sheet? a. the total costb. the accumulated amortizationc. the amortization expensed. the estimated amortization expense for the next ten years