Answer:
The correct answer here is Cash basis.
Explanation:
One of the methods of recording accounting transactions for income and expenses is cash basis accounting , where the transactions are only recorded when income is received in cash or expenses are paid in cash. This accounting method is not accepted by GAAP (Generally accepted accounting principle ) and IFRS ( International financial reporting standards ) because this method violates the income ( revenue ) and expense recognition principle.
Answer:
a. borrowers gain at the expense of lenders
Explanation:
Inflation refers to the sustained increase of the price of a commodity over a period of time.
It can be caused due to increase in production cost or increased demand of a good or service.
The losers during inflation are the creditors because the money loaned out had more value or purchasing power compared to what is repaid. This is due to the fact the borrower will still owe the lender the same amount .
Company A uses the FIFO method to account for inventory and Company B uses the LIFO method. The two companies are exactly alike except for the difference in inventory cost flow assumptions. The debt-to-equity ratio measures your company's total debt relative to the amount originally invested by the owners and the earnings that have been retained over time.
The debt to equity ratio using the book value of equity in 2019 would be 2.29.
Finding the debt-to-equity ratio.
This can be found by the formula:
= Interest bearing Debt / Book value of equity
= (Notes payable + Current maturities of long term debt + Long term debt) / Book value of equity
= (10.5 + 39.9 + 239.7) / 126.6
= 2.29
Learn more about debt-to-equity here
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Answer:
A. 56.32 days
B. 40.38 days
Explanation:
The Operating cycle is the Inventory period + AR period
Inventory period= 365/(Cost of goods sold/Average inventory)
Average inventory= (Beginning Inventory + Ending Inventory)/2
Accounts Receivable period= 365/(Credit Sales/Average Accounts Receivable )
Average Accounts Receivable= (Beginning Accounts Receivable + Ending Inventory Accounts Receivable)/2
Calculated Inventory period= 42.58 days
Calculated Accounts Receivable period= 13.74 days
The Cash cycle is also called the Net Operating cycle which is the Inventory period + Accounts Receivable period- Accounts Payable period
Accounts Payable period= 365/(Cost of goods sold/Average Accounts Payable)
Average Accounts Payable = (Beginning Accounts Payables + Ending Inventory Accounts Payable)/2
Calculated Accounts Payable period= 15.94 days
Answer:
This is an example of multiple pricing.
Explanation:
Sometimes if you add all the extra charges, like shipping and handling, you might realize that the product being offered by the infomercial is actually more expensive than similar products that you can buy on retail stores or websites.
Infomercials do this on purpose, they use low selling prices as bait, but then they charge very high fees for processing your order and shipping it.
