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Murljashka [212]
3 years ago
10

What is the most likely reason for a company to have an increase in average collection period? a. The company has incurred addit

ional marketing expenses to attract customers.b. The company has become more lenient in its credit policies and is extending credit terms to maintain customers.c. Customers are paying in a timelier manner.d. The company has tightened its credit policies for its customers.
Business
1 answer:
KengaRu [80]3 years ago
4 0

Option A

the most likely reason for a company to have an increase in average collection period : The company has incurred additional marketing expenses to attract customers

<u>Explanation:</u>

The average collection period is the measure of time it necessitates for a business to obtain prices owed by its customers in words of accounts receivable.  To satisfy their economic commitments, Businesses estimate the average collection period to create assured they possess sufficient money on control.

Most firms intend for an average collection period that is flatter than a retail credit system. They require to be capable to extend serving terms to intrigue customers and be capable to accumulate efficiently as strongly.

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The capitalize the expenses provide various types of benefits to the firms for obtaining the various types of updated assets that typically helps in providing the long term duration.

According to the given question, the interest in the given two cases is basically treat by expense capitalize for the purpose of financial reporting.

Therefore, Expense capitalize  is the correct answer.  

 

8 0
2 years ago
Inez was content with her job at Pieces Packaging until the company added two levels of supervision, lowered bonuses, and decrea
nasty-shy [4]

Answer:

hygiene

Explanation:

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I hope you find this information useful and interetsing! Good luck!

3 0
2 years ago
You are the beneficiary of a life insurance policy. the insurance company offers two options for receiving the proceeds: a lump
r-ruslan [8.4K]
Take the $550 per month for monthly income as after ten years it would reach the same amount just in a longer period of time
8 0
3 years ago
Since the FICA tax is split equally between employers and employees, we can conclude that the incidence of this tax is also equa
shepuryov [24]

Answer:

Since the FICA tax is split equally between employers and employees, we can conclude that the incidence of this tax is also equally shared.

a. True

Explanation:

The incidence of the FICA tax refers to the extent to which an individual employee or the employing organization suffers from the imposition of the FICA tax.  In the final analysis, the incidence may not be borne by the organization but consumers of its goods and services, depending on the elasticity of demand.  Employers and employees usually split the FICA tax equally.  The FICA (Federal Insurance Contribution Act) refers to the federally mandated tax for Social Security and Medicare.

4 0
2 years ago
The proceeds of a 10,000 death benefit are left on deposit with an insurance company for seven years at an annual effective inte
11111nata11111 [884]

Answer: $135

Explanation:

First find the future value of the proceeds.

= 10,000 * (1 + 5%)⁷

= $14,071

The monthly payments are equal so X is an annuity and as the payment is made immediately, this is an Annuity due.

Convert the interest rate into monthly figure:

= 3%/12

= 0.25%

Present value of annuity = Annuity * (( 1 - (1 + r)^-n ) / r) * (1 + r)

14,071 = Annuity * ((1 - (1 + 0.25%) ⁻¹²⁰) / 0.25%) * (1 + 0.25%)

14,071 = Annuity * 103.82

Annuity = 14,071 / 103.82

= $135.53

= $135

5 0
3 years ago
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