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Bulldog Auto Service was started on January 1, 2014. The company experienced the following events during its first two years of operation:
Events Affecting 2014.
1.Provided $45,000 of repair services on account. 2.Collected $32,000 cash from accounts receivable. 3.Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the service revenue on account.
Events Affecting 2015 .
1.Wrote off a $320 account receivable that was determined to be uncollectible. 2.Provided $65,000 of repair services on account. 3.Collected $66,000 cash from accounts receivable. 4.Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the service revenue on account.
Which of the following is the least likely consideration that management uses when deciding whether to pay a dividend? Is the company's average number of common shares outstanding decreasing?
How would you describe the difference between financial and managerial accounting? What are the distinguishing features of managerial accounting?
Managers and professionals often pay more attention to the levels of their measures (means, sums, etc.) than to the variation in the data (the dispersion or the probability patterns/distributions that describe the data).
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Justify your decision, showing your calculation and overall company's net operating income or loss before and after eliminating Northern Division.
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