Answer:
overstate net income but days to collect will increase.
Explanation:
A bad debt expense is defined when any receivable is no more collectible as the customer is not able to fulfil or satisfy the obligation in order to pay the obligation of paying an outstanding debt because of some financial problems or due to bankruptcy.
Thus when any organization is more optimistic about the debt collection, it will understate the bad debt expenses and will also overstate the net income. But in this case the number of days to collect the payment increases.
Answer:
Answer is D. better matching of revenue and expense is achieved than under FIFO.
Explanation:
The inventory cost flow assumption describes the flow of product cost: from the inventory and to cost of goods sold. When a firm uses the LIFO inventory cost flow assumption: better matching of revenue and expense is achieved than under FIFO.
Answer:
The forward premium (discount) is:
the dollar is trading at a 10% discount to the euro for delivery in 120 days.
Explanation:
a) Data and Calculations:
Spot exchange rate = €1.50/$
120 day forward exchange rate = €1.45/$
When the forward rate is less than the spot rate, the means that the currency is trading at a discount in the forward market.
The formula for calculating the forward premium or discount is:
= (Forward Rate Minus Spot Rate)/Forward Rate * 360/120
= (€1.45 - €1.50)/€1.45 * 360/120
= €-0.05/€1.45 * 3
= €-0.03448 * 3 = -10.3%
b) The forward premium occurs when the forward exchange rate is higher than the spot exchange rate. The forward discount occurs when the forward exchange rate is lower than the spot exchange rate. Forward premium or discount is normally expressed as the annualized percentage of the difference, using 360 days.
Answer:
<u>Base the bid on the incremental costs incurred because the job will contribute toward the company's profit.</u>
Explanation:
Note that <em>the term having 'excess capacity' means the company has more than enough resources to bid for contacts.</em>
Since the company's overall goal is to make more profit it bidding strategy over its competitors should highlight that it has lower incremental (marginal) cost because of having full capacity in place. This fact would give the company an edge in the bid.
Answer:
a conglomeration.
Explanation:
When a business grows through unrelated diversification, acquiring companies in different industries, it is called a conglomeration. The word conglomeration means that a thing which is made from totally distinctive elements. In business the a conglomeration is a corporation made by combination of different and unrelated business. Many small company with diversified business combined together to make a conglomeration.
