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grigory [225]
2 years ago
8

Abc buys widgets for $5 cash and sells them on account for $8. At the point of sale, what is the effect on the cash flow of abc?

.
Business
1 answer:
s2008m [1.1K]2 years ago
6 0

At the point of sale, there is an increase in the effect on the cash flow of abc.

What is cash flow?

A cash flow is a real or virtual movement of money.

  • A cash flow in its narrow sense is a payment (in a currency), especially from one central bank account to another; the term 'cash flow' is mostly used to describe payments that are expected to happen in the future, are thus uncertain and therefore need to be forecast with cash flows.
  • A cash flow is determined by its time t, nominal amount N, currency CCY and account A; symbolically CF = CF(t,N,CCY,A).
  • It is however popular to use cash flow in a less specified sense describing (symbolic) payments into or out of a business, project, or financial product.
  • Cash flows are narrowly interconnected with the concepts of value, interest rate and liquidity. A cash flow that shall happen on a future day t(N) can be transformed into a cash flow of the same value in t(0).

To learn more about cash flow: brainly.com/question/10714011

#SPJ4

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2 years ago
Timber Mills Corporation and Ur-Choice Lumberyards enter into a contract for a sale of plywood. Under a destination contract, th
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Answer:

b. deliver the goods to a particular destination.

Explanation:

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3 years ago
Metro Inc. has two production departments (Lamination and Molding) and three service departments (Human Resources, Technology Su
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Answer:

Lamination= $50,000

Explanation:

Giving the following information:

Metro Inc. has two production departments:

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The Molding department has 120 employees.

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Allocation:

Lamination= 200,000*0.25= $50,000

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Saving for four years for a down payment on a house affects how soon you are able to purchase a home. This is an example of:
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Which of the following allows the insurer to relieve a minor insured from premium payments if the minor's parents have died or b
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Answer:

The correct answer is a) Payor Benefit

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