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1 year ago

_____ are specific repayment conditions as to how long customers have to pay bills and the amount of cash discount allowed.

1 answer:

7 0

Credit terms are specific repayment conditions as to how long customers have to pay bills and the amount of cash discount allowed.

<h3>What is the purpose of credit terms?</h3>

Credit terms are the payment requirements stated on an invoice. It is fairly common for sellers to offer early payment terms to their customers in order to accelerate the flow of inbound cash.

Credit means a loan, an agreement in which the lender (creditor) supplies the borrower with money, goods or services which is to be returned in future. Terms of credit apart from the rate of interest, collateral also includes documentation, mode of repayment.

To learn more about credit terms visit the link

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You go on vacation to Mexico and take $1,000 with you. During your time in Mexico, the peso appreciates in value relative to the

pogonyaev

Answer:

We will be able to purchase fewer goods and services.

Explanation:

Appreciation of a currency in terms of another currency implies an increase in the worth of a currency in terms of another currency.

An appreciation in the value of peso in terms of dollars means that the worth of peso has increased in terms of dollar.

In other words, the worth of dollar in terms of peso has decreased. The value of $1,000 will decline.

So, a tourist in Mexico with $1,000 will be able to buy fewer goods an services.

4 0

2 years ago

Read 2 more answers

18. Callon Industries has projected sales of 67,000 machines for 2012. The estimated January 1, 2012, inventory is 6,000 units,

Georgia [21]

Answer:

Production budget = 76, 000 units

Explanation:

<em>The sales budget is adjusted for the projected opening and closing inventories unit to arrive at the production budget: </em>

The production budget can be determined using the formula below

Production budget = Sales budget + closing inventory- opening inventory

Production budget = 67,000 + 15,000 - 6,000

= 76000

Production budget = 76, 000 units

6 0

3 years ago

Runaround Corporation sells running shoes and during January they ran production machines for 23,000 hours total and incurred $

viva [34]

Answer:

The answer is: The variable maintenance cost is $0.21 per machine hour

Explanation:

To find the variable maintenance cost per machine hour we must divide the total amount spent in maintenance costs by the total amount of production hours.

Since both production hours and maintenance cost vary so much, we must high-low method:

variable maintenance cost = (highest maintenance cost - lowest maintenance cost) / (highest machine hours - lowest machine hours) =

= ($10,500 - $8,600) / (23,000 - 14,000) = $0.21 per machine hour

3 0

3 years ago

Sara borrowed $500 for four years at 3 percent interest, compounded annually. Use the formula to calculate the total amount she

topjm [15]

The answer is 562.754405
The total amount she will have to pay back in four years is. 562.754405

6 0

3 years ago

Read 2 more answers

When using the indirect method to determine cash flows from operating activities, an increase in prepaid expenses should be repo

Andrews [41]

Answer:

b. A deduction from net income in determining cash flows from operating activities.

Explanation:

An increase in prepaid expenses is deducted from Net Income. The reason behind it very simple and no rocket science is there. Lets take Insurance as a prepaid expense. You Paid in-advance for Insurance, it increase your current asset that is Prepaid Insurance BUT at the same time cash went out of the Business.

I hope I made it clear to you. If you still have any queries, feel free to ask me.

Thanks!

8 0

2 years ago