1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
goldfiish [28.3K]
3 years ago
6

Small businesses that are just getting off the ground often have problems with the difference between cash coming into the busin

ess and cash going out of the business. For example, if the company allows far too lenient credit sales terms, customers do not pay on time, which could cause cash to come in too slowly. That's why all businesses must keep a careful watch on their ______.
a) advance payments accounts

b) asset summarization

c) recording processes

d) cash flow
Business
1 answer:
faust18 [17]3 years ago
4 0

Answer:

d) <u>cash flow</u>

Explanation:

Small businesses are characterized by limited scale of operations and small quantum of revenues. Thus, small businesses in their initial stages have to deal with the common problem of shortage of funds owing to delay in receipts from debtors owing to relaxed credit terms.

The receipts are not received on time while the expenses accumulate which leads to a situation of cash crunch wherein it gets difficult to meet expenses and liabilities.

Thus, to avoid such situations businesses have to consider their credit policies and credit allowing limit so as to ensure enough cash to meet day to day working capital requirements.

This points towards being careful of cash inflows and outflows and efficient management of cash flows, keeping check on receipts and payments to ensure smooth operations.

You might be interested in
Jeff visited a car dealership and test-drove a used car. After discussing the price with Jake, a salesman at the dealership, and
Orlov [11]

Answer:

Since this whole sales agreement is about a car, then it falls under the statute of frauds. Any sales contract or offer for any amount of $500 or more needs to be signed. We are not told the final price of the car, but if we consider that only the discount was $500, then we can assume that the price of the car was higher than that. Since the note was not signed, then the promise is not valid.

6 0
4 years ago
Please find below scenario to answer the questions given in below:
oee [108]

Answer: Sherry and Maria.

Explanation:

7 0
3 years ago
At the end of April, the first month of the company's year, the usual adjusting entry transferring rent earned to a revenue acco
valina [46]

Answer:

According to the information provided is possible to conclude that in both options the indicators are understated

Explanation:

(a) Rent revenue (or revenues) will be understated. Net income will be understated.

(b) Retained earnings at the end of the period will be understated. Unearned rent (or liabilities) will be overstated.

7 0
3 years ago
Volume(units) Series 1 Series 2 Series 3 Series 40 $450 $0 $800 $100100 450 800 800 105200 450 1,600 800 120300 450 2,400 1,600
elena55 [62]

Answer: Please refer to Explanation

Explanation:

To make your question clearer, I have attached a table that demarcates the figures.

Series 1 are FIXED COSTS. Fixed costs do not change over the production process and are not dependent on the level of production. Even if you were not producing anything you would still be accruing fixed costs. Notice how the cost stays at $450 throughout even when no production was being done. It is a fixed cost.

Series 2 is a VARIABLE COST. Variable costs change as production takes place. They rise as more goods are produced and usually do so at a steady rate. Variable costs are not incurred when production is not going on. Notice in Series 2 how there was no cost at 0 units but as soon as production started the costs started increasing at a steady rate of 800 per hundred units.

Series 3 is what we call STEP-WISE COST. It gets it's name from the fact that it looks like a step when graphed. Why?

These costs stay stable for a certain amount of production and then change depending on if production increases or decreases. Notice how from 0 units to 200 units it stayed the same and then increased and stayed the same again.

I have attached a sample of step wise costs.

Series 4 is what we call CURVILINEAR COST. They are the confused guys so to speak because they increase at an irregular rate as production rises. Notice how it increased by 5 and then by 15 and then by 25. Irregular rate rise. I have also attached a sample of this when it is graphed.

Thanks all I have for today. Thank you for coming to my Ted Talk. If you need any clarification do comment.

8 0
4 years ago
Brandon and Jane Forte file a joint tax return and decide to itemize their deductions. The Fortes' income for the year consists
miskamm [114]

Answer:

$1,500

Explanation:

Calculation for the amount of investment interest expense deduction for the year

Using this formula

Investment interest expense deduction=Interest income+ Nonqualifying dividend

Let plug in the formula

Investment interest expense deduction=$500+$1,000

Investment interest expense deduction=$1,500

Therefore the amount of investment interest expense deduction for the year will be $1,500

5 0
3 years ago
Other questions:
  • Pepsi has cooperated with America on the Move to improve many of its products and their labels, such as reducing the saturated f
    15·1 answer
  • An engineering firm is hired by a developer to prepare plans for a shopping mall. Prior to the final bid date, several contracto
    14·1 answer
  • Assume ABC uses the average cost method of inventory valuation. What unit cost would be used to determine the amount in ending i
    9·1 answer
  • Corentine Co. had $167,000 of accounts payable on September 30 and $140,000 on October 31. Total purchases on account during Oct
    14·1 answer
  • Which of the following would not be included in calculating the incremental cash flow for a project? The firm expects sales of t
    5·1 answer
  • A change in money income of consumers will
    7·1 answer
  • All of the members of the ladies' circle were horrified when each of them arrived at the parish hall with 20 gallons of potato s
    15·1 answer
  • Asset acquisition vs. stock purchase (fair value equals book value) Assume that an investor purchases the business of an investe
    6·1 answer
  • Should all companies use blind recruiting in place of traditional recruiting, or are there exceptions that must be considered? ​
    15·1 answer
  • Products such as refrigerators and washing machines are examples of _____ goods.
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!