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2 years ago

The accounts receivable turnover is computed by dividing

1 answer:

6 0

Answer: The accounts receivable turnover is computed using the formula below: Net credit sales divided by Average accounts receivable

Explanation: The accounts receivable turnover ratio is a measure used to quantify a company's effectiveness in managing its receivables collections or amount owed by clients. The following steps are involved in calculating the accounts receivables turnover:

Get the accounts receivable at the beginning and end of the desired periods and divide by 2 to get the average, which is the denominator in the formula above.
Then get the net credit sales, which is the total sales revenue done on credit to customers, after backing out customers' returns

High accounts receivable turnover ratio means the company's collection process is highly effective while the low ratio signifies the opposite.

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Describe the steps involved in closing the books. What’s is the most important output of the accounting cycle? What would happen

yuradex [85]

The steps involved in closing the books are as follows:

Closing the Revenues

Closing the Expenses

Closing the net income

Closing the dividend and withdrawals

The most important output of the accounting cycle is the financial statement like balance sheet and Income statement. If the books were never closed, then the business would never be able to know the financial position for a particular accounting period.

8 0

3 years ago

The decisions you make at work typically have obvious answers.

Digiron [165]

This is true. A decision made at work typically has an obvious answer.

3 0

3 years ago

Read 2 more answers

1. When a business finds it necessary to layoff some employees (due to slowing sales), what positive effects might this have for

Artist 52 [7]

Answer:

PART A

(1) To reduce wastages

(2) To increase profit margin

(3) To reduce cost of operations.

PART B

(1) NO,he is not included

(2) Because he is unable to work or be gainfully employed.

Explanation:

Layoff is a manpower management process through which Organisations down size their manpower strength or number in order to meet certain specified Objectives. Layoffs usually takes place in Organisations that are not meeting their Strategic objectives such profit making,cost reduction and Control etc.

Unemployment is a term used to describe the inability of a person or group of persons who are willing and have the capacity to work but could not secure gainful employment in an economy.

MR. SMITH DOES NOT HAVE THE CAPACITY TO WORK,HENCE HE CAN NOT BE INCLUDED IN THE UNEMPLOYMENT STATISTICS.

3 0

2 years ago

Heart of Tennessee Telecom has these account balances at December 31, 2016:

Komok [63]

Answer:

Explanation:

a. Current ratio = current assets/ current liability

= current assets= 2,300+5,700+3,500= 11,500

Current liability= 3,000+3700= 6,700

Current ratio = 11,500/3700

= 1.72

b. How much in current assets does Heart of Tennessee Telecom have for every dollar of current liabilities that it owes?

It has $1.72

3 0

2 years ago

Caribou Gold Mining Corporation is expected to pay a dividend of $6 in the upcoming year. Dividends are expected to decline at t

Oxana [17]

Answer:

A) $50

Explanation:

The computation of the intrinsic value of the stock is shown below:

But before that the required rate of return is computed by using CAPM

Required rate of return = Risk-free rate of return + Beta × (Market rate of return - risk-free rate of return)

= 5% + 0.5 × (13% - 5%)

= 5% + 0.5 × 8%

= 5% + 4%

= 9%

Now the intrisinc value is

= Dividend ÷ (required rate of return - growth rate)

= $6 ÷ (9% - (-3%)

= $6 ÷ 12%

= $50

Hence, the intrinsic value of the stock is $50

Therefore the correct option is A.

4 0

2 years ago