Accounts receivable turnover is the number of times that a company collects its average account receivable per year. The ratio evaluates the ability of a company to issue credit to its customers efficiently and collect funds from them in a timely manner. A high turnover ratio indicates a number of high-quality customers. A low turnover ratio represents a large proportion of clients having financial difficulties. It also indicates an excessive amount of bad debt.
To answer the question -- what is the accounts receivable turnover for the imagine company, use this computation:
Given:
Net Sales - $1,000,000
Beginning Account Receivable =$700,000
Ending Accounts Receivable = $300,000
Let X = Accounts Receivable Turnover
X = Net Sales ÷ ((Beginning Accounts Receivable + Ending Accounts Receivable) / 2)
X= 1,000,000/ (700,000+300,000)/2
X = 1,000,000/ (1,000,000/2)
X = 1,000,000/500,000
X = 2
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Answer:
1. The failure to file a personal tax return in a timely manner is usually considered an act discreditable to the profession.
2. Advertising is permitted as long as it is not false or misleading.
Explanation:
It is considered one of the ethics of the AICPA for its members to always file their personal tax return timely. In a case where this is not done, it is considered a discreditable act to their profession. Furthermore, according to the AICPA, as long as what is being advertised portrays true intentions of the organization and does not mislead people, advertising is permitted.
Answer:
the amount of overhead applied during the year is $2,250,000
Explanation:
The computation of the overhead applied is shown below;
= Estimated annual overhead ÷ machine hours × actual machine hours
= $2,400,000 ÷ 400,000 machine hours × 375,000 hours
= $2,250,000
hence, the amount of overhead applied during the year is $2,250,000
Answer: Vertical integration
Explanation:
The vertical integration is one of the type of business management strategy that helps in managing the organization supply chain and also helps in producing the different types of products and the services.
It helps in controlling the distributors, producers and also the retailer in the business. The following are some advantages of the vertical integration are as follows:
- Helps in improving the efficiency
- Reducing the overall cost
- Helps in control the different types of functions
- Increase the share in the market
According to the given question, the fresh n fragrant is practicing the vertical integration hat helps in the manage supply chain of the company.
Therefore, Vertical integration is the correct answer.
Answer: The term structure of interest rates and the time to maturity are always directly related.
Explanation:
The term structure of interest rates shows the relationship between interest rates and the different maturity periods of bonds. Normally, these move in the same direction i.e., the higher the maturity period, the higher the interest rate.
This however is not a given. It might be expected for instance that interest rates might drop in future. In such a situation, the interest might reduce with a longer maturity period which would depict an inverse relationship instead of a direct one.
