1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
dimulka [17.4K]
3 years ago
5

Both the inventory conversion period and payables deferral period use the average daily COGS in their denominators, whereas the

average collection period uses average daily sales in its denominator. Why do these measures use different inputs
Business
1 answer:
il63 [147K]3 years ago
7 0

Answer:

Explanation:

In business accounting, the inventory conversion period / payables deferral period and average collection period use different inputs due to the fact that Inventory and accounts payable are carried at cost on the balance sheet, whereas accounts receivable are recorded at the price at which goods are sold. Therefore the accounts receivable (average collection period) are attached and dependent on the specific/changing price of the goods sold.

You might be interested in
A company sells a product for $3. Direct materials are $1.80 per unit. The company prepares a flexible budget at two sales volum
strojnjashka [21]

Answer:

$150 for budgeted direct materials and $180 for budgeted direct materials.

Explanation:

You take direct materials of 1.80 x sales volume of 50 units= budgeted direct material $90

To find a sales volume of 60 units, you take $1.80 of direct material X sales volume of 60 units= budgeted direct material of 108.

3 0
2 years ago
As part of the initial investment, Jackson contributes accounts receivable that had a balance of $32,290 in the accounts of a so
yuradex [85]

Answer: $30,923

Explanation:

From the question, we are told that as part of an initial investment, Jackson contributes accounts receivable that had a balance of $32,290 in the accounts of a sole proprietorship. Out of the amount, $1,367 is deemed completely worthless and for the remaining accounts, the partnership will establish a provision for possible future uncollectible accounts of $848.

The amount debited to accounts Receivable for the new partnership will be the difference between the account receivable balance and the amount that was deemed worthless. This will be:

= $32,290 - $1,367

= $30,923

Therefore, the amount debited to Accounts Receivable for the new partnership will be $30,923

3 0
3 years ago
Which of the following is concerned with the effect of exchange rate changes on individual transactions, most of which are short
castortr0y [4]

Answer: Transaction exposure

Explanation:

Transaction exposure, is a form of foreign exchange risk that is faced by the organizations that take part in international trade. It occurs when the fluctuation in exchange rate change a contracts value before it is settled.

It is concerned with the effect of exchange rate changes on individual transactions, most of which are short-term affairs that will be executed within a few weeks or months.

6 0
3 years ago
Why is gossiping at the workplace unprofessional?
Amanda [17]
Gossiping at the workplace is unprofessional because it is passing rumors about other employes or other people maybe even your boss.
6 0
3 years ago
Read 2 more answers
Marketing News is a magazine from the American Marketing Association that covers all aspects of the marketing industry. It is ma
KatRina [158]

Answer:

Vertical publication

Explanation:

Vertical publication are those types of publications where the editorial content is majorly focused on one type of industry or business. They are similar to trade magazines. In this case, the publication is concerned and majorly focused on marketing industry, hence why we refer to it as a vertical publication. They are publications usually written to benefit a particular business, industry or profession.

3 0
3 years ago
Read 2 more answers
Other questions:
  • HELPPSPSPPSPSOSPPSSPOSJHDJWK
    10·1 answer
  • Which of the following models is best suited to decide when given a set of destinations, what is the shortest route that allows
    5·1 answer
  • Which of the following is the best example of a good debt strengthening your financial security?
    9·2 answers
  • Consider the market for the British pound sterling (GBP). Note that although the United Kingdom (Great Britain) is an official m
    8·2 answers
  • A general partner is responsible for any debts of the partnership, regardless of whether he or she was directly involved in the
    8·1 answer
  • If a market basket of goods cost $100 is the US and 70 euros in France, then the PPP exchange rate would be $.70/euro.A. TrueB.
    15·1 answer
  • However, Rina's decision regarding how many workers to use can vary from week to week because her workers tend to be students. E
    11·2 answers
  • Consider the following information about a simple country that produces two different goods: Year PriceMilk QuantityMilk Price C
    11·1 answer
  • An advantage of a corporation is that
    12·1 answer
  • What is the distinguishing feature of a market structure with monopolistic competition?
    15·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!