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Jet001 [13]
3 years ago
8

If a firm averages $2,000 in daily credit sales and offers 60-day terms, the average accounts receivable balance will be $120,00

0.
a. True
b. False
Business
1 answer:
Alexeev081 [22]3 years ago
8 0

Answer:

a. True

Explanation:

The computation of the average accounts receivable balance is shown below:

= Daily credit sales × day terms

= $2,000 × 60 days terms

= $120,000

We simply multiplied the average amount with the day term so that the average account receivable balance could come

Hence, the given statement is true

Therefore the correct option is a.

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Under a job order cost system, costs are accumulated for: Multiple Choice Each individual unit produced. Each job supervisor. Ea
Anna71 [15]

Answer:

The correct answer is letter "C": Each batch of production, known as a job or lot.

Explanation:

Job order cost systems are used to accumulate the cost per unit of items that are different enough, each one having significant costs. Under this costing system each item produced is given its direct material costs, labor costs, and overhead. Clothing, food, and aircraft manufacturing companies use the job order cost system.

<em>Unitary costs are accumulated per batch of productions under this type of costing system.</em>

6 0
3 years ago
The check is written and signed by <br> A. Payee<br> B. Drawee <br> C. Payer <br> D. Drawer
amm1812

Answer:

The check is written and signed by a payer

Explanation:

Checks are written by payers before any disbursement could be made, this must be strictly followed to enable smooth transaction and make such checks tenable in any bank.

8 0
3 years ago
Read 2 more answers
Suppose a company has a unique dividend policy. The firm has expects to pay a dividend of $3.45 in the next year. They anticipat
NemiM [27]

Answer:

A. 16.71%

Explanation:

Use dividend discount model (DDM) to solve this question.

Formula for finding the required return of a stock is;

r = \frac{D1}{P0} +g

where P0 = Current price = $17.50

D1 = Next year's dividend = $3.45

r= required return = ?

g= growth rate = -3% or -0.03 as a decimal (negative sign is because dividend is expected to decrease)

r = \frac{3.45}{17.50} -0.03\\ \\ =0.19714 - 0.03\\ \\ =0.16714

As a percentage , it becomes 16.71%

7 0
3 years ago
The market value of the equity of Hudgins, Inc., is $582,000. The balance sheet shows $21,000 in cash and $192,000 in debt, whil
SpyIntel [72]

Answer:

3.27

Explanation:

Calculation to determine the enterprise value-EBITDA multiple for this company

First step is to calculate the

Enterprise value

Using this formula

Enterprise value = Market Capitalization + Total Debt - Cash and equivalents

Let plug in the formula

Enterprise value=$582000 + $192000 - $21000

Enterprise value=$753000

Second step is calculate EBITDA using this formula

EBITDA = EBIT + Depreciation and Amortization

Let plug in the formula

EBITDA= $93000 + $137000

EBITDA=$230,000

Now let determine the EBITDA multiple using this formula

EBITDA multiple = Enterprise Value / EBITDA

Let plug in the formula

EBITDA multiple=$753000 / $230000

EBITDA multiple= 3.27

Therefore enterprise value-EBITDA multiple for this company is 3.27

8 0
3 years ago
What is a system for ordering items that have little or no value at the end of a sales​ period?
lara [203]

a. ​Single-period inventory model

In this model, inventory is ordered once at the beginning of the period, not replenished during the period, and anything left over at the end is scrapped.

4 0
3 years ago
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