What happens as interest rates fall?

The revenue cycle is a major cycle for most companies. Accounts receivable, revenue, and other accounts are tested through this

Eduardwww [97]

Answer and Explanation:

1. The misstatement would depend on when there is inappropriate revenue recorded

2. For avoiding the revenue misstatement, the client should have to cut off the policies

3. The revenues are earned at the time when the company achieved or accomplished for fulfiling its obligation

4. The side agreements could modify the terms of sales

5. For recording the revenue, the collectibility needs to be confirmed

6 0

3 years ago

"'Suppose that while in college, you saved money by eating generic fruits and vegetables from the grocery store. Now, suppose th

zysi [14]

Answer:

Normal goods

Explanation:

Normal goods are goods that are goods whose demand increases when income increases and falls when income falls.

I increase my demand for organic fruits and vegetables when my income increased. This shows they are normal goods.

Generic fruits and vegetables are inferior goods.

Inferior goods are goods whose demand falls when income rises and increases when income falls.

I hope my answer helps you

8 0

3 years ago

All IRS-certified volunteer preparers participating in the VITA/TCE programs must use Form 13614-C along with an effective inter

katen-ka-za [31]

Answer: True

Explanation:

It is required that all volunteers preparing to participate in the VITA/TCE programs must use Form 13614-C along with an effective interview for every return prepared at the site. This is a major requirement, if not they won't participate or partake in the program.

6 0

2 years ago

If the inflation rate was 3.00% and the nominal interest rate was 8.00% over the last year, what was the real rate of interest o

Alex Ar [27]

The real interest rate would be 5%.
You are getting 8% interest and losing 3% due to inflation= 5%

3 0

3 years ago

Proposal #1 would extend trade credit to some customers that previously have been denied credit because they were considered poo

wolverine [178]

Answer: See explanation

Explanation:

a. Compute the incremental income after taxes that would result from these projections:

Sales increase= $200,000

Less: Uncollectible accounts:

= 7% × $200,000

= ($14,000)

Annual incremental value= $186,000

Less: Collection cost:

= 3% × $200,000

= ($6000)

Less: Production and selling cost:

= 80% × $200,000

= ($160,000)

Incremental income before tax= $20000

Tax at 30% = ($6000)

Incremental income after tax = $14000

b. Compute the incremental Return on Sales if these new credit customers are accepted If the receivable turnover ratio is expected to be 4 to 1 and no other asset buildup is needed to serve the new customer.

Incremental Return on Sales will be:

= Incremental income after taxes ÷ Increase in sales

= $14000/$200000

= 7%

c. Compute the additional investment in Accounts Receivable.

Since the receivable turnover ratio will be 4, then the additional investment in the accounts receivable will be:

= Additional credit sales/Receivable turnover ratio

= $200000 /4

= $50,000

Therefore, the additional investment in the accounts receivable will be $50,000.

d. Compute the incremental Return on New Investment.

The incremental return on new investment will be:

= Incremental income after taxes/Additional investment

= $14000/$50000

= 28%

e. If your company requires a 20% Rate of Return on Investment for all proposals, do the numbers suggest that trade credit should be extended to these new customers? Explain.

Yes, the numbers implies that trade credit should be extended to these new customers. This is because the incremental return on the new investment is 28%, and this is higher than the rate of return on investment which is 20%.

5 0

3 years ago

What happens as interest rates​ fall?

What happens as interest rates fall?