Answer:
Yes is True that when a firm initiates or increases a cash discount, the net effect on the accounts receivable investment is difficult to determine because the nondiscount takers paying earlier will reduce the accounts receivable investment, while the new customer accounts will increase this investment.
Explanation:
Accounts Receivable is any amount of money owed by customers for purchases made on credit. It is an asset account on the balance sheet since it is money due in the short run.
As a current asset, Accounts Receivable is an important aspect of a businesses' fundamental analysis used to measures a company's liquidity or ability to cover short-term obligations without additional cash flows.
Accounts receivable Investment will be reduced if the firm initiates or increases a cash discount.
Answer:
$70,100
Explanation:
The computation of the equipment recorded on a balance sheet is shown below:
= Purchase of new equipment + transportation cost + sales tax paid + installation cost
= $58,500 + $2,700 + $4,700 + $4,200
= $70,100
We simply added the above four items so that the recorded value of an equipment could come
Practice working with others even if you don't fell comfortable with this person, or necessarily like them at all.
Answer:
December 31, year 9
Explanation:
Here, we want to state that date that is possible for Milo to acquire qualified replacement property.
In order to avoid being taxed on a gain resulting from an involuntary conversion, the property subject to the conversion must be replaced within a specified time, measured from the end of the calendar year in which the proceeds are received.
Generally, the period is 2 years, but it is 3 years when the involuntary conversion results from government condemnation or eminent domain and is extended to 4 years when the loss is in connection with a declared federal disaster area.
We are told from the question that Milo received the recovery on January 2, Year 5, the property would have to be replaced within 4 years from the end of Year 5 or by December 31, Year 9
