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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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3 years ago
Gramps purchased a joint survivor annuity that pays $500 monthly over his remaining life and that of his wife, Gram. Gramps is 7
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Answer:

$150

Explanation:

Calculation of how much income that Gramps will recognize on the first payment.

Since joint survivor annuity has 23.1 as the annual return multiple .

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Expected return =Annual payment *Return multiple

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$6,000×23.1

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Therefore :

$97,020/$138,600

=0.7×100

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6 0
3 years ago
BMC is considering upgrading the sound systems in their theaters so that their patrons can get the full experience from surround
Luda [366]

Answer:

Fixed cost = $50,000

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