When a purchase on account is made the invoice becomes a debit memo?

1 answer:

6 0

When a purchase on account is made, the invoice becomes a debit memo. The account receivable is normally documented through invoice which is issued to the customer who is buying on credit. When purchasing on an account, the balance of the invoice becomes a payable, that is, a debt.

You might be interested in

After developing a computer locking system, Caffrey Computer Corp. worked out a licensing deal with Chicago Desktop (a potential

Vika [28.1K]

Answer:

<u>A Strategic Alliance</u>

Explanation:

A Strategic Alliance refers to a combined effort or activities of two firms so as to strengthen their market position and yet at the same time maintain their individual separate corporate existence.

It represents a mutually beneficial agreement between two corporate firms under which, terms are less binding and stringent than a joint venture.

The purpose behind such an alliance could be, expansion, product line improvement or together gain a competitive advantage.

Such an alliance helps both businesses achieve a common goal driven by mutual assistance and pooling of resources.

In the given case, the tie up between Caffery computer corp. and Chicago desktop to sell computer locking systems alongside computers, would be termed a strategic alliance, since such an arrangement would benefit both, reduce competition for each with collective gain w.r.t market share.

3 0

2 years ago

Jose owns a dog whose barking annoys Jose's neighbor Amy. Suppose that the net benefit of owning the dog is worth $400 to Jose a

Alex Ar [27]

Answer: Jose has to pay $600.

Explanation:

Jose has to pay $600 to Jane for her inconvenience.

In Accordance with Coase theorem, when two conflicting parties exist, one has to ‘buy the right’ from the other party.

Which In this scenario or case, Jane has the ‘right to prevent Jose from having a dog’.

Thus, Jose has to pay compensation to Jane so that he can keep his dog and at the same time Jane is also compensated for the inconvenience which may arise later.

5 0

3 years ago

Read 2 more answers

Why is it important to be informed about economic activity

Dennis_Churaev [7]

Because it just is ok

7 0

2 years ago

List the different elements of an apprenticeship

cupoosta [38]

1.Technical Certified/VRQ (Vocational related Qualification)

2.NVQ (National Vocational Qualification)

3.Key skills

4.EER (Employment Rights & Responsibilities)

3 0

3 years ago

a senior executive who promotes the project and ensures its support, both financially and administratively, at the highest leve

Kruka [31]

The answer to this problem is "CHAMPION" such as when the <span> Senior Executive of the company who promotes the project and ensures its support, both financially and administratively aspects, at the highest or the top levels of the organization is needed to fill the role of a CHAMPION on a development team where he will leads and facilitate to achieve the common goals of the entire organization.</span>

5 0

3 years ago