Money owed for products and services purchased on credit to be paid at a later date is known as ____

Anton [14]

Answer:

Please see Explanation

Explanation:

Management

Managers are not included in this list of users by the IASB Framework, because management should have access to all the financial information they need, and in much more detail than financial statements provide. However, management is responsible for producing the financial statements and might be interested in the information they contain.

Employees

Employees need information about the financial stability and profitability of their employer. An assessment of profitability can help employees to reach a view on the ability of the employer to pay higher wages, or provide more job opportunities in the future.

Investors

Investors in a business entity are the providers of risk capital. Unless they are managers as well as owners, they invest in order to obtain a financial return on their investment. They need information that will help them to make investment decisions.

Creditors

Financial information about an entity is also useful for suppliers who provide goods on credit to a business entity, and ‘other trade creditors’ who are owed money by the entity as a result of debts incurred in its business operations (such as money owned for rent or electricity or telephone charges). They can use the financial statements to assess how much credit they might safely allow to the entity.

Customers

Customers might be interested in the financial strength of an entity, especially if they rely on that entity for the long-term supply of key goods or services.

Tax authorities

The tax authorities use the information in the financial statement for the purpose of business regulation or deciding taxation policies.

5 0

3 years ago

Consumption consists of spending by households on goods and services, with the exception of Group of answer choices purchases of

Margarita [4]

Answer:

purchases of new houses.

Explanation:

The consumption is the amount that is to be consumed by the consumer or the amount spent by the household with respect to the goods and services they are taking.

In addition, it is also included while calculating the Gross Domestic Product (GDP). The formula is shown below:

Consumption + Investment + Government purchase + Net exports

where,

Net exports = Exports - imports

So in the given situation, the purchase of a new house is considered an exception because most the people purchase the house for renting it that gives them a regular income.

4 0

3 years ago

Maslowich

This will likely deter people from accumulating wealth in future.

Answer: Option 3.

Explanation:

Taxes are the amount of money that the citizens have to pay to the government. It is obligatory in nature. And in return to these taxes, the government will provide services to the citizens of the country.

But since the citizens have to pay to the government from their own personal income, so it pinches the citizens. An additional tax on the wealth of the citizens will deter the people to save and accumulate the wealth in future and will not motivate them.

3 0

4 years ago

Norred Corporation has provided the following information: Cost per Unit Direct materials Direct labor Variable manufacturing ov

mariarad [96]

Answer:

$134,300

Explanation:

Total indirect manufacturing cost = (Unit Produced * Variable manufactured overhead) + Fixed manufacturing overhead

= (8,000 * 1.60) + 121,500

=12,800 + 121,150

=$134,300

Hencc, the total amount of indirect manufacturing cost is $134,300

4 0

3 years ago

The average price of a gallon of gas in 2015 dropped $0.94 (28 percent) from $3.34 in 2014 (to $2.40 in 2015). Let’s see whether

Airida [17]

Answer:

Note: See missing wordings in attached picture below

a. 2015

Gross profit percentage = [Total revenue - Cost of crude oil and products] / Total revenue

Gross profit percentage = [$225 - $119] / $225

Gross profit percentage = $106 / $225

Gross profit percentage = 0.47111111

Gross profit percentage = 47.11%

2014

Gross profit percentage = [Total revenue - Cost of crude oil and products] / Total revenue

Gross profit percentage = [$242 - $127] / $242

Gross profit percentage = $115 / $242

Gross profit percentage = 0.475206612

Gross profit percentage = 47.52%

Conclusion: Insignia Corporation are likely to earn less gross profit from each dollar of sales in 2016 because Gross profit percentage decreased from 2014 to 2015.

b. 2015

Net profit margin = Net income / Total revenue

Net profit margin = $26/$225

Net profit margin = 0.1155555

Net profit margin = 11.56%

2014

Net profit margin = Net income / Total revenue

Net profit margin = $37/$242

Net profit margin = 0.152893

Net profit margin = 15.29%

6 0

3 years ago

Money owed for products and services purchased on credit to be paid at a later date is known as _____.