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4 years ago

Stella, Inc. purchased 75 telescopes for $25 each from Luna Co. When they unpacked the telescopes, Stella found

Business

1 answer:

cupoosta [38]4 years ago

8 0

Answer:

A. The company would debit the Allowance account instead of Purchase Returns.

Explanation:

In the management of purchases transactions, a company will maintain several other accounts such as purchase returns and purchases allowance.

Purchases allowance will include allowances such as discount received and other compensations from suppliers. The allowances reduce the net value of the purchases. i.e., when calculating the net purchases, one has to deduct the purchases allowed amount. When the business receives a purchase allowance, the amount will increase the purchases allowance account. The accountant will, therefore, debit that account.

Purchases returns are goods that the company had purchased from suppliers but have returned them for some reason. They could be defective or inappropriate.

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a man borrows money from an automobile dealership to pay for a car. if he fails to repay the loan, the dealership will take pos

Setler [38]

Select one:

a. creditor, collateral, borrower

b. borrower, creditor, collateral

c. credit union, loan, creditor

d. loan, collateral, creditor

Answer: a - creditor, collateral, borrower.

The automobile dealership loans money to the man to buy a car. So, the automobile dealership is the creditor.

Collateral refers to anything that may be pledged in return for money, with the condition that the pledged item will be forfeited if the money is not repaid. Since the dealership will take possession of the car if the man fails to repay the money, it is a collateral.

The man who bought the car, owes money to the automobile dealership as he bought the car on a loan. So, he is a borrower.

7 0

4 years ago

Read 2 more answers

Suppose Stuart Company has the following results related to cash flows for 2021: Net Income of $5,600,000 Increase in Accounts P

seropon [69]

1. The statement of cash flows of Stuart Company for the year ended December 31, 2021, is as follows:

Stuart Company

<h3>Statement of Cash Flows</h3>

For the year ended December 31, 2021, $'000

Net Income $5,600

Depreciation 1,900

Other Adjustments (800)

Increase in Accounts Payable 600

Decrease in Accounts Receivable 900

Increase in Inventory (200)

Net Cash Flow from Operating Activities $8,000

2. The Net Cash Flow from Operating Activities for Stuart Company for 2021 is <u>$8 million</u>.

<h3>What are operating activities' cash flows?</h3>

The cash flows from the operating activities section affect revenues and expenses.

They indicate the cash flows that originate from the regular business activities of the entity.

To prepare the statement of cash flows, the first items to adjust the net income are the non-cash expenses and losses and revenues and gains.

Learn more about the operating activities section at brainly.com/question/25530656

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2 years ago

Kelly's company is selecting a manager to expand operations in china. kelly's boss says the new manager must display high cultur

Morgarella [4.7K]

If Kelly's company is selecting a manager to expand operations in china. kelly's boss says the new manager must display high cultural intelligence. what would most likely help kelly get the job is: displaying appreciation for diversity.

<h3>What is cultural intelligence?</h3>

Cultural intelligence can be defined as the ability of a person to know about different culture and to as well adapt and relate with people that are of culture that is different from his.

Based on the scenario kelly can get the job if he display the appreciation for cultural diversity which will inturn enables the recruiter known that kelly has knowledge about other cultures.

Therefore what would most likely help kelly get the job is: displaying appreciation for diversity.

Learn more about Cultural intelligence here:

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brainly.com/question/14726265

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2 years ago

05) Assume that prices and wages adjust rapidly so that the markets for labor, goods, and assets are always in equilibrium. What

Kay [80]

Answer:

Explanation:

a. A temporary increase in government purchases would result in a reduction in savings, which would, in turn, lead to the implementation of higher taxes by the government so as to match prices and wages.

This would: make output to remain unchanged, real interest to increase and current price level to increase as well.

b. A reduction in expected inflation would lead to an increment in the demand for real money, as people do not expect inflation to increase for a while. Thus, more demand creates a reduction in the price level. Everything else remains unchanged. This would: make output remain unchanged, real interest remain unchanged and the current price level to decrease.

C. A temporary increase in labor supply would make more people have jobs and therefore more people can save. If more people save the interest rates are liable to decrease therefore money demand will increase. This would: make output to increase, real interest to decline and current price level to decrease.

d. An increase in the interest rate paid on money will lead to a higher demand for money. With an unchanged nominal money supply and higher money demand, the price would decline but everything remains unchanged. This would make: output remain unchanged, real interest remains unchanged and the current price level decrease.

4 0

3 years ago

What is the slope of the line represented by the equation y=-2/3<br>- 5x?

iren [92.7K]

Answer:

the slope is -5 or -5/1

Explanation:

7 0

3 years ago