A Newly Created Design Business Called Smart Art Is Just

question 48

Multiple Choice

A newly created design business called Smart Art is just finishing up its first year of operations. During the year, there were credit sales of $40 000 and collections of $36 000. One account for $650 was written off. Smart Art uses the ageing- of- accounts method to account for Bad debts expense, and has calculated an amount of $200 as their estimate of uncollectable amounts at year- end. At the end of the year, what is the ending balance in Accounts receivable?

• A)$36 000
• B)$3 350
• C)$39 350
• D)$4 000

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Definitions:

Risk-Free Rate

The expected return on an investment that carries no risk, frequently indicated by government bond yields.

Standard Deviation

A measure of the amount of variation or dispersion in a set of values, used widely in statistics to quantify the degree of difference.

Expected Return

The anticipated value or percentage yield that an investment is likely to earn over a specified period.

Portfolio Weight

The fraction of a portfolio's total value that is invested in a particular asset.