Initially, a bankers' acceptance is essentially a postdated check.
<h3>What is postdated check?</h3>
- A post-dated check is one that has been written by the drawer for a future date and is used in banking. Depending on the nation, a post-dated cheque may be cashed or deposited prior to the date printed on it.
- A check can be postdated by writing one for a later date rather than the one it was written on.
- Usually, the goal is for the check recipient to hold off on cashing or depositing the check until the date that has been mentioned in the future.
- In addition to postdating checks, there are additional options to give yourself extra time to obtain the required amounts to deposit checks in your account.
Learn more about post-dated check here:
brainly.com/question/27960337
#SPJ4
Answer:
a.Perishable items must have an actual physical flow of FIFO
Explanation:
- Cost flow estimates are required to determine the cost of goods sold and to end inventory. Companies make some ump habits about what goods are sold and what items are listed (as a result of various accounting methods).
- Financial reporting and tax benefits and the actual movement of goods are not required to be accepted
- The continuous inventory system may have different end inventory and COGS yields compared to the periodic inventory system due to LIFO's calculation time and weighted average cost flow estimates.
- Reducing or exceeding the lower price of goods sold when prices fall or rise
Answer:
The value of the firm if we ignore taxes would be $8.96 million.
Explanation:
Given information -
Thompson number of outstanding shares - 280,000
Price of 75,000 outstanding shares - $2.4 million
Note - here since Thompson is repurchasing its 75,000 outstanding shares, the interest of 5.5 % doesn't have to be paid yet, therefore this will not be taken in to account when taking out the value of the firm.
Formula for taking out value of firm =
Price for repurchasing of shares x Total number of outstanding share /
Shares repurchased
= $2.4 million x 280,000 / 75,000
= $8.96 million
Answer:
the payback period is 3.34 years
Explanation:
The computation of the payback period is as follow;
Given that
Year Cash flows Cumulative cash flows
0 -$40,000 $-40,000
1 $3,000 $3,000
2 $8,000 $11,000
3 $14,000 $25,000
4 $19,000 $44,000
5 $22,000 $66,000
6 $28,000 $94,000
Now the payback period is
= 3 years + ($40,000 - $25,000) ÷ $44,000
= 3 years + 0.34
= 3.34 years
Hence, the payback period is 3.34 years
Answer:
A debit to Depreciation Expense
A credit to Accumulated Depreciation
Depreciation Expense $2000
Accumulated Depreciation $2000
Explanation:
The purpose of depreciation is to achieve the matching principle of accounting. That is, a company is attempting to match the historical cost of a productive asset to the revenues earned from using the asset. It is difficult to precisely match the contribution of the asset to a company's revenues, so the asset cost is designated to the years in which the asset is used.
The accounting entry is:
A debit to Depreciation Expense
A credit to Accumulated Depreciation
Depreciation Expense $2000
Accumulated Depreciation $2000