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vlabodo [156]
3 years ago
13

If a company adopts an accounts receivable factoring program, and accounts for the factoring as a sale of receivables, which of

the following is true in the period the company starts the program (all else equal)? A. The factoring arrangement needs to be with a consolidated entity to qualify for sale accounting. B. The accounts receivable balance will increase. C. Cash flow from operations may increase. D. A retroactive restatement is necessary due to a change in accounting principle.
Business
1 answer:
horsena [70]3 years ago
4 0

Answer:C. cash flow from operations may increase

Explanation:

A factoring system is one in which a firm sell his right to receive payments on it's receivable to a firm referred to as the factor as a discount in which the amount of discount represents the factor fees for taking up the risk.

The factor may be with or without recourse to the firm selling the receivable.

It's mostly entered into to reduce payment defaults and increase inflow of cash for operations.

The factor company does not need to be a consolidated company,it usually reduce the receivable and does not require a change in accounting principles.

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When Max was hired to work in the warehouse of the automobile manufacturing facility, he was told that while he didn't have to j
zimovet [89]

Answer:

The answer is: Union shop

Explanation:

Union shop refers to an agreement between a company and a labor union making it mandatory that all employees must belong to the labor union or if they are hired recently, they must join the union within a certain period of time.

In this case the time given to Max was 8 weeks for him to join the union or he would not be able to work there.

5 0
3 years ago
Wooten & McMahon Enterprises produces a product with the following per-unit costs: Direct materials $13.00 Direct labor 8.80
vichka [17]

Answer:

COGS= $31,597.5

Explanation:

Giving the following information:

Direct materials $13.00

Direct labor 8.80

Manufacturing overhead 16.50

Last year, Wooten & McMahon Enterprises produced and sold 825 units

First, we need to calculate the cost of goods manufactured:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 0 + 13 + 8.8 + 16.5 - 0= $38.3

Total cost of goods manufactured= 825*38.3= $31,597.5

Now, we can calculate the cost of goods sold:

COGS= beginning finished inventory + cost of goods manufactured - ending finished inventory

COGS= 0 + 31,597.5 - 0= $31,597.5

8 0
2 years ago
The core power of personal selling, and primary source of its persuasiveness, draws from the opportunity sales people enjoy to:
hjlf

Answer:

listen to prospects and customers                        

Explanation:

Personal marketing takes place when a salesperson interacts with a prospective customer to make a deal.

Personal selling could be described as ' the system of individual-to-individual contact between a salesman and a potential consumer, where the prior discovers about the desires of the consumer and tries to meet those needs by giving the client the opportunity to purchase anything of interest, such as goods or services.

word can also be utilized to describe the state where a corporation employs a sales team as among the primary ways in which it interacts with consumers.

8 0
3 years ago
On January 1, 2011, Ozark Minerals issued $10 million of 9%, 10-year convertible bonds at 101. The bonds pay interest on June 30
horsena [70]

Answer:

Explanation:

Bonds are corporate debt units that are issued by firms inform of financial securities and  are traded as tradeable assets. It is basically referred to as a fixed income instrument since bonds conventionally are paid a certain fixed amount of interest rate (coupon) to its respective debtholders.

going by the question Upon issuance, Ozark should

Credit premium on bonds payable $100,000

Because face value of bonds =  $10 million but issue price is  $10 million * 101 % i.e $ 10100000

So, premium = 10100000 - 10000000 = $ 100000

5 0
3 years ago
Read 2 more answers
QUESTION 8 of 10: Your average weekly take home wage is $615. You take a one-week paid vacation and a second week unpaid vacatio
levacccp [35]

Answer:

$45

Explanation:

A surplus is when income exceeds expenses.

One year has 52 weeks. If one week was unpaid leave, then payments were received for 51 weeks.

Average payments per week = $615

Total earning per week =$615 x 51

=$31,365  

The total expenses for the year were  $31,320. The surplus amount will be income minus expenses

= $31,365 - $31,320

=$45

             

7 0
3 years ago
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