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2 years ago

Differentiate accounts receivable from notes receivable.

1 answer:

7 0

Notes receivable are backed by a promissory note, carry interest, and have periods that can occasionally go beyond a whole business cycle. While notes receivable can be either short-term, long-term, or both depending on the repayment plan, accounts receivable are short-term current assets.

The money that clients owe your business for goods or services for which invoices have been issued is known as accounts receivable. On the balance sheet, current assets are listed as the total amount of all accounts receivable, which includes bills from clients for goods or services provided to them on credit.

Accounts receivable are a debit on a trial balance until the client pays. Once the customer has paid, you will debit your cash account and credit accounts receivable because the funds are now in your bank and are no longer owing to you. On your trial balance, the concluding balance of accounts receivable is typically a debit.

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The interest rate is 15.5 percent a year in Indonesia and 1.7 percent in a year in Hong Kong. The inflation rate is 12.6 percent

yawa3891 [41]

Answer:

In Indonesia, 2.58%,

In Hong Kong, 3.14%

Explanation:

Since,

$\text{Real interest rate}=\frac{\text{1+Nominal interest rate}}{\text{1+Inflation rate}}-1$

In Indonesia,

Nominal interest rate = 15.5% = 0.155,

Inflation rate = 12.6% = 0.126,

So, $\text{Real interest rate}=\frac{1+0.155}{1+0.126}-1=\frac{1.155}{1.126}-1=0.02575\approx 0.0258\approx 2.58\%$

In Hong Kong,

Nominal interest rate = 1.7% = 0.017,

Inflation rate = -1.4% = -0.014,

So, $\text{Real interest rate}=\frac{1+0.017}{1-0.014}-1=0.03144\approx 0.0314\approx 3.14\%$

8 0

3 years ago

Ted Corporation expects to generate free-cash flows of $200,000 per year for the next five years. Beyond that time, free cash fl

wariber [46]

Answer:

The value of Ted stock is $2.43

Explanation:

Free cash flow From Year 1 to 5 = $200000

Cash Flow Year 6 = 200000*1.05

= $210000

This cash flow is expected to grow forever, so the terminal value can be caluclated at Year 5 of the above perptuity by Gordon Growth model

Terminal Cash FLow Value at Year 5 = 210000/(15% - 5%)

= $2100000

Present Value of above stream

= 200000*PVIFA(5 yr, 15%) + 2100000*PVIF(5 yr, 15%)

= $200000*3.352 + $2100000*0.497

= $1714100

Value of equity = Present Value of Firm - Value of debt

= $1714100 - $500000

= $1214100

Number of shares = 500000

Value per share = $1214100/500000

= $2.43

Therefore, The value of Ted stock is $2.43

7 0

4 years ago

Does a competitive firm’s price equal its marginal cost in the short run, in the long run, or both? explain.

svlad2 [7]

The price of a firm is equal to its marginal cost in both the short and long run. In both the short and long run, price equals marginal revenue. Firms should increase output as long as marginal revenue exceeds marginal cost, and reduce output if marginal revenue is less than marginal cost.

Revenue is the gross income derived from the sale of goods and services related to the company's main activities. Commercial income is also called sales or earnings. Some companies derive their income from interest, royalties, or other fees.

Revenue is the gross income a business generates from its core business, such as sales of products and services, property rentals, regular payments and interest on loans. Sales are calculated before deducting costs such as discounts and returns.

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5 0

2 years ago

Your health club is offering a free one-year membership for the person who attends the most yoga classes in March. This results

nalin [4]

Answer:

The economic principle is "people usually exploit opportunities to make themselves better off".

Explanation:

Here, the health club is offering a free one-year membership for the person who attends the most yoga classes in March.

So, there is an opportunity for every individual to get a free one year membership. So, more and more people will try to attend more yoga classes in order to obtain free membership for one complete year. This choice will be made by most of the individuals because they want to get rid of paying fee every month. Hence, this will tend every individual to grab and exploit that opportunity to make themselves better off.

Thus, the increase in people attending yoga classes is based on the economic principle "people usually exploit opportunities to make themselves better off".

4 0

3 years ago

Which of the following is a service business?

creativ13 [48]

Answer:

travel agency

Explanation:

as service businesses include companies engaged in transport, food service, distribution, retail, and other industries that sell services rather than products. These intangibles provide the primary revenue source for service businesses.

4 0

3 years ago

Read 2 more answers