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2 years ago

The practice of buying goods and services now and paying for them later is termed:______

Business

1 answer:

sesenic [268]2 years ago

7 0

The practice of buying goods and services now and paying for them later is termed is Bartering.

A barter is a transaction in which two or more parties exchange products or services without exchanging cash or other forms of payment like credit cards.

In its simplest form, bartering entails the exchange of one party's good or service for another party's good or service.

A carpenter who constructs a fence for a farmer is a straightforward illustration of a barter transaction.

The farmer might compensate the carpenter with $1,000 worth of crops or groceries rather than paying the builder $1,000 in cash for labor and supplies.

To learn more about Bartering here

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Auto Industries Company reported the following on its income statement:

AleksandrR [38]

Answer:

Option c. 5.25 times is the correct answer.

Explanation:

Below is the calculation:

Income before income tax = $420000

Income tax expenses = 120000 dollars

Net income = $300000

Interest expense = $80000

Interest earned ratio = Earning Before Interest and Taxes / Interest Expenses

Interest earned ratio = 420000 / 80000

Interest earned ratio = 5.25 times

Option c. 5.25 times is the correct answer.

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3 years ago

The first step in rational decision-making is to Group of answer choices choose a person who could evaluate the decision. choose

mr Goodwill [35]

Answer:

identify the criteria that are important in making the decision.

Explanation:

Rational decision-making is a step-by-step method for choosing the best choice from the options and is carried out on the basis of reasoning, objectivity and examination of any factor before concluding

Therefore according to the above explanation the correct answer is to identify the criteria that are important in making the decision as it is the first step of rational decision making.

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3 years ago

Use the following information of VPI Co. to prepare a statement of cash flows for the year ended December 31 using the indirect

r-ruslan [8.4K]

Answer:

VPI Co.

Cashflow statement for the year ended December 31

Operating activities

Net income 59,000

Add Depreciation 7600

Less gain from sale of machinery (2900)

Increase in Inventory (8,600)

Increase in accounts payable 3,300

Decrease in accounts receivable 6,600

Cash flow from Operating activities 65,000

Investing activities

Cash received from sale of machinery 11,300

Financing activities

Cash paid for dividends (4,600)

Net cashflow 71,700

Cash balance at prior year-end 43,600

Cash balance at current year-end 114,300

Explanation:

The indirect method of cashflow statements starts with the cashflows from the operating activities to Financing and then investing activities.

An increase in an asset other than cash is a decrease in cash and vice versa. An increase in a liability is an increase in cash and vice versa. We add or subtract none cash items like depreciation, gain on asset disposal etc.

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3 years ago

In which type of economy is a business owner most likely to benefit from free enterprise?

Colt1911 [192]

Most likely would be a democratic system.

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3 years ago

During its first year of operations, a company entered into the following transactions: Borrowed $20,000 from the bank by signin

Alenkinab [10]

Answer:

$62,400

Explanation:

Assets are Economic resources controlled by the entity as a result of past events from which cash is expected to flow into the business.

Assets include the following Amounts:

Cash from Bank Note $20,000

Cash from Stock Issues $40,000

Supplies Inventory $4,000

Payment for Supplies ($1,600)

Total Available Assets $62,400

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3 years ago