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sergey [27]
3 years ago
5

When a firm initiates or increases a cash discount, the net effect on the accounts receivable investment is difficult to determi

ne because the nondiscount takers paying earlier will reduce the accounts receivable investment, while the new customer accounts will increase this investment.
A. True
B. False
Business
1 answer:
Scilla [17]3 years ago
6 0

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.

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Type the correct answer in the box. Spell all words correctly.
frosja888 [35]

Answer:

After-sales service

Explanation:

After-sales service are all the efforts of a business to keep its clients happy and satisfied with the products they have purchased. It is providing care to customers after they have made purchases from the business. After-sale service help in retaining and building loyal customers.

Some of the techniques used in after-sales service include

  • Keeping in touch with customers after purchases
  • Responding to customer queries either on call, emails, or customer visit
  • Offering technical supports when a customer is facing challenges like in the scenario described above
3 0
3 years ago
Read 2 more answers
The following is the Bravo Unlimited adjusted Trial Balance.
ivanzaharov [21]

Explanation:

The preparation of the Assets section is shown below:-

                                         Alpha Dog Company

                                         Adjusted Trial Balance

                                           December 31, 2016

Particulars                                               Assets

Cash                                                        $88,450

Accounts Receivable                             $150,000

Supplies                                                  $29,255

Total current assets                               $179,255

Fixed Assets

Equipment                            $295,285

Accumulated Depreciation -$238,760  $56,525

Stock Investment                                     $172,000

Total Fixed assets                                    $228,525

Total Assets                                              $407,780

Total Assets = Total current assets + Total fixed assets

7 0
3 years ago
Hushovd Iron Works has collected the following data for its Thunderbolt line of​ products: Direct materials standard 15 pounds p
Hitman42 [59]

Answer:

The direct material quantity variance is $10,800 favourable.  (the options in the question are not correct).

Explanation:

The direct materials quantity variance represents a difference between what was actually produced and the standard or idea that should have been produced especially with regards to the use of direct materials.

To calculate material quantity variance

Step 1:Calculate the Standard Usage of Material

Formula= (Actual Units of Finished goods Purchased x Standard Price of Material per unit)

= 4,000 units x 15 Pounds

= 60,000 Pounds

This means the standard material usage is 60,000 pounds

Step 2: Now calculate the Direct Material Quantity Variance

Formula= (Standard Material Usage - Actual Material Usage) x The Standard Price per Unit of Material

= 60,000 pounds (computed in step 1) - 40,000 pounds (given in the question)

= 20,000 pounds x $0.54

=$10,800

Since the standard Material is higher than the actual material usage, it means that the answer is as follows;

The direct material quantity variance is $10,800 favourable.

Kindly note that the multiple options in the question above are for a different set of figures and a different question.

6 0
3 years ago
____________ is when suppliers allow a business to take possession of needed goods and pay for them at a later date or in instal
lys-0071 [83]

Trade credit

Small firms may be able to get finance in the form of trade credit from their suppliers. Suppliers enable the company to obtain the products and services it requires and pay for them later or in installments.

<h3>What is the meaning of trade credit?</h3>

A business-to-business (B2B) agreement known as trade credit allows customers to make purchases of goods without paying in cash upfront and to make payments to suppliers at a later date. Businesses that use trade credits typically give customers 30, 60, or 90 days to make payment, with the transaction being documented by an invoice.

Trade credit can be compared to a form of 0% financing because it increases an organization's assets while deferring payment for a certain amount of products or services to the future and requires no interest payments throughout the repayment period.

Learn more about trade credit here:

brainly.com/question/4503841

#SPJ4

5 0
1 year ago
Many academic institutions offer a sabbatical policy. Every seventh year a professor is given a year free of teaching and other
Fittoniya [83]

Answer:

$ 127,773.36

Explanation:

The professor will be in sabbatical  in years 7,  14, 21, 28, 35 and 42

In each of these years, he receives full pay amounting to=50,000

The PV of the sabbatical full pay

= \frac{50,000}{1.04^7} + \frac{50,000}{1.04^14} + \frac{50,000}{1.04^21} + \frac{50,000}{1.04^28} + \frac{50,000}{1.04^35} +\frac{50,000}{1.04^42} = 84,101.22

=50,000/(1+4%)^7+ 50,000/(1+4%)^14+ 50,000/(1+4%)^21+ 50,000/(1+4%)^28+50,000

/(1+4%)^35+ 50,000/(1+4%)^42

==50,000/(1+4%)^7+ 50,000/(1+4%)^14+ 50,000/(1+4%)^21+ 50,000/(1+4%)^28+50,000

/(1+4%)^35+ 50,000/(1+4%)^42

= \frac{50,000}{1.316} + \frac{50,000}{1.732} + \frac{50,000}{2.279}  +\frac{50,000}{2.999} +\frac{50,000}{3.946} + \frac{50,000}{5.193}

=37,993.92 + 28,868.36 + 21,939.45 + 16,672.22 + 12,671.06 + 9,628.35

=  $ 127,773.36

Thus, at an interest rate of 4%, the present value of all the sabbatical earnings amount to $ 127,773.36

6 0
3 years ago
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