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3 years ago

When a firm sells goods or services on credit, the owner needs to remember that for cash budgeting purposes ________.

Business

1 answer:

miskamm [114]3 years ago

4 0

Answer:

The correct option is c. she/he must account for a delay between the sale and the actual collection of the proceeds

Explanation:

As in the given question, it is mentioned that the credit sale is made, so the owner would remember the delay between the sale and the actual collection so that he knows the gap between these two.

Moreover, for cash budgeting purposes, it is necessary to remember when the owner received the cash and the date on which credit sale was made.

So, all other options are incorrect because it doesn't make any comparison between these two thing which is important for cash budgeting purposes.

Hence, The correct option is c. she/he must account for a delay between the sale and the actual collection of the proceeds

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Riley Company borrowed $36,000 on April 1, Year 1 from the Titan Bank. The note issued by Riley carried a one year term and a 5%

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Answer:

The amount of cash flow from operating activities that would appear on the Year 2 statement of cash flows would be -$850 or $850 outflow

Explanation:

The computation of the cash flow from the operating activities for year 2 is shown below:

= Cash revenue in year 2 - interest on notes payable

= $950 - $1,800

= -$850

The negative amount shows an outflow of cash .

The interest on the note payable is computed by

= Borrowed amount × interest rate

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= $1,800

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3 years ago

On January 1, Edmiston Corporation had 1,600,000 shares of $10 par value common stock outstanding. On March 31 the company decla

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Answer:

option D is correct.

Explanation:

The entry to record stock dividend is:

Debit

Stock Dividends 2400000 [ $= 1600000\times 0.10\times 15$ ]

Credit

Stock Dividends Distributable 1600000 [ $= 1600000\times 0.10 \times 10$ ]

Paid in capital in excess of par = 2400000 - 1600000 = 800000

Stock dividends will not affect the total equity of the stockholder

Therefore option D is correct.

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4 years ago

During a retirement ceremony, Jose becomes emotional at the sentiment expressed by the speakers. This is an example of

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Empathetic listening

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3 years ago

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The standard deviations of individual stocks are generally higher than the standard deviation of the market portfolio because th

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Answer: Diversifies risk

Explanation:

The main purpose of having a portfolio is to be able to diversify risk so that a total loss is not made if things do not go well. As such, well diversified portfolios are able to reduce their unsystematic risk.

Individual stock on the other hand, cannot be diversified and so have unsystematic risk which makes their standard deviations(risk) higher.

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4 years ago

n autarky, suppose that equilibrium sugar price is $100 per ton in Birdonia, a small agricultural nation. Now, suppose Birdonia

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Answer:

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4 years ago