Answer:
The Best 5 Reasons For Businesses to Extend Credit
Additional Cash Flow. If customers can put off payment without consequences, they will. ...
Additional Sales
Additional sales will come in the form of customers spending more money on your products and services. ...
Higher Customer Loyalty. ...
Leverage During Negotiations. ...
Simple Technique For Extending Credit.
When selling on credit, there is a chance that the customer may go bankrupt and fail to pay you. The company will lose revenue. The company will also have to write off the debt as bad debt
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Answer:
Explanation:
1. 28/11 Debit: Bank. $4,500
Credit: deferred Rev $4,500
Being advance pmt for services
2. 01/12 Debit: advert exp $900
Debit: Ad Prepaym. $1,800
Credit: Bank. $2,700
Being payment for advert
3. 31/12 Debit: Salary payable$8000
Credit: Salary Exp. $8000
Being Accrued salaries
4 31/08 Debit: Bank. $70,000
Credit: Loan A/c. $70,000
Being bank loan borrowed
5. 31/12 Debit: into on loan $2,100
Credit: Bank. $2,100
Being accrued interest on loan borrowed.
Answer:
(B) Debit Depreciation expense and Credit Property Plant and Equipment
Explanation:
the depreciation is the accrued expense recognize for the effect on time on the firm's assets. There is no cash involve in a depreciation It is an accounting expense. So A and C cannot be coorect.
As the depreciation is an expense, it will be debited. not credited. so D is incorect as well.
The net income is a figure which resumes the expenses and revenues of the company. It is not an account thus, it can't be debited or credited. Making E incorrect as well.
Answer:
The differential cost = $8.55
Explanation:
When there is a contrast between the cost of two alternatives to decide to process further or not, it is termed as a differential cost. Company uses the differential cost concept when there are more than one products to produce.
Here, the company has two products - Product J and Product D. Product J is selling currently with a cost of $15.75. If the company wants to produce Product D, they need additional $8.55 cost. Therefore, $8.55 is the differential cost of producing product D.
Answer:
The statement of cash flows should report net cash provided by financing activities of $265,000.
Explanation:
Cash Flow from Financing activites:
Common stock issued = $200,000
Dividend Payment = ($30,000)
Issuance of note payable = $45,000
Issuance of Bond = <u> $50,000 </u>
Net cash flow = <u>265,000</u>
The statement of cash flows should report net cash provided by financing activities of $265,000.
