firm has not recorded the bad debts by mistake. Which of the ving is the effect of bad debt ommission? Net profit would decrease Net profit would increase Gross profit would overstate Gross profit would understate

how do companies account for bad debt? Why would they use an allowance account instead of directly crediting A/R? What are the various methods of accounting for bad debt? Describe the differences in how the expense is calculated.

Want Both the Correct Answer

Is debt good for a company? Why or Why not?

When close to the zone of insolvency, managers have an incentive to gamble. This is known as    Question  options:   a)  an agency cost of debt that covenants cannot attenuate   b)  an agency cost of equity known as fraudulent conveyance    c)  an agency cost of debt that negative covenants can attenuate   d)  an agency cost of debt that positive covenants can attenuate

What si the financial manipulation? How does it involves a considerable decrease in the number of days sales outstanding?