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nevsk [136]
3 years ago
15

A restrictive short-term financial policy, as compared to a more flexible policy, tends to increase A. the probability that a fi

rm will face a cash-out situation. B. the sales of a firm due to the firm's credit availability and terms. C. sales due the large amount of inventory on hand. D. accounts receivable. E. the ability of a firm to charge premium prices.
Business
1 answer:
Karo-lina-s [1.5K]3 years ago
7 0

Answer:

A. the probability that a firm will face a cash-out situation

Explanation:

First, it is important to understand that the characteristic of a restrictive short-term financial policy is that it does not allow firms to keep a high level of assets that are easily converted to cash i.e. current assets. These assets include accounts receivable and cash among others.

As such the probability that the firm will face a cash out situation (due to the insufficiency of liquid assets) is high.

Looking at the other options, any option that does affect the short term assets or liquidity of the firm will be false. As such sales will not be affected, account receivable will not increase

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Materials that are used in manufacturing that cannot be cost-effectively traced to finished goods are called:
andreev551 [17]

Answer:

Indirect Materials. used in manufacturing that cannot be cost-effectively traced to finished goods. (//Often direct materials can be classified as indirect when their costs are very low. Indirect Labor.//)

7 0
3 years ago
The word valet comes from the French term for "caretaker."<br><br> true<br> false
mezya [45]
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3 0
3 years ago
Which capital budgeting method uses accrual accounting, rather than net cash inflows, as a basis for calculations?
Anastaziya [24]

Answer:

Annual rate of return method

Explanation:

Annual rate of return method unlike some other capital budgeting techniques uses a data that is consistent with accrual concepts. the income it uses is the estimated annual net income of the entity.

Below is the formula used for  Annual rate of return method:

Annual rate of return = Estimated Annual net income/Average Investment.

It ignore the cash inflow.                                    

4 0
4 years ago
Read 2 more answers
Calculate a firm's WACC given that the total value of the firm is $2 million, $600,000 of which is debt, the pre-tax cost of deb
butalik [34]

Answer:

the weightage average cost of capital of the firm is 13.50%

Explanation:

The computation of the weighted average cost of capital is shown below;

WACC = Cost of debt × weightage of debt + cost of equity × weightage of equity

= 10% × ($600,000 ÷ $2,000,000) + 15% × ($1,400,000 ÷ $2,000,00)

= 3% + 10.5%

= 13.5%

hence, the weightage average cost of capital of the firm is 13.50%

6 0
3 years ago
Organizations can become "bad barrels" because ​ a. they do not allow employees to pursue their own individual values. b. the pr
KatRina [158]

Answer: The pressure to succeed creates opportunities that reward unethical decisions.

Explanation: "bad barrels" has attempted to identify characteristics of organisations that make them particularly vulnerable to tolerating or even encouraging destructive behavior. Organizations can become "bad barrels" because the pressure to succeed creates opportunities that reward unethical decisions. Bad barrels explains misbehaviour in the workplace.

5 0
4 years ago
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