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
SIZIF [17.4K]
3 years ago
15

If ending accounts receivable exceeds the beginning accounts receivable Group of answer choices cash collections during the peri

od exceed the amount of revenue recognized no cash was collected during the period net income for the period is less than the amount of cash-basis income cash collections during the year are less than the amount of revenue recognized
Business
1 answer:
sukhopar [10]3 years ago
4 0

Answer:

no cash was collected during the period

or

cash collections during the year are less than the amount of revenue recognized

Explanation:

For example if we had Accounts receivable beginning balance $ 250,000 and Sales of $ 500,000 are made on accounts then the Total  Accounts receivable will be $ 750,000.

But out of the $ 500,000 sales only $300,00 cash is collected and the remaining  $ 200,000 is still in the Accounts receivable balance so the ending Accounts receivable balance will be $ 250,000 + $200,000 = $ 450,000 which will be greater than beginning Accounts receivable balance.

So there are two possibilities either  cash collections during the year are less than the amount of revenue recognized.

or

no cash was collected during the period.

Similarly it cannot be choice no 1 : collections during the period exceed the amount of revenue recognized

Because if more cash is collected then ending account receivable balance would be less than the beginning account receivable balance.

Choice no 3 is also wrong if cash collections are more than the ending accounts  receivable balance would be less

You might be interested in
A stock index is valued at $800 and pays a continuous dividend at the rate of 3% per year. The 6-month futures contract on that
yan [13]

Answer:

Possible options:

A. 38

B. 40

C. 42

D. There is no arbitrage opportunity.

Answer is B

Explanation:

With the given data, the no-arbitrage futures price should be; 800e(0.025-0.03)*0.50 =798−Since the market price of the futures contract is lower than this price there is an arbitrage opportunity. The futures−contract could be purchased and the index sold.−

Arbitrage profit is 798 - 758 = 40

8 0
3 years ago
Sudoku Company issues 26,000 shares of $8 par value common stock in exchange for land and a building. The land is valued at $235
EastWind [94]

Answer and Explanation:

The journal entry to record the issuance of the stock in exchange of the land and the building is as follows:

Land $235,000

Building $380,000

            To Common stock, $8 par value (26,000 shares × $8) $208,000

            To Paid-in capital in excess of par value, common stock $407,000

(To record the  issuance of the stock in exchange of the land and the building)

Here the land and building is debited as it increased the assets and the common stock and its paid in capital is credited as it also increased the stockholder equity

7 0
2 years ago
Problems of privatization?
8_murik_8 [283]

Answer:

political interference in decision making, costly and inefficient use of public resources

7 0
2 years ago
In January of this year, Amazon bought a machine for $220,000. The machine has a useful life of 10 years and a salvage value of
Step2247 [10]

Answer:

Depreciation expense for May $1000

Explanation:

The depreciation expense is the systematic allocation of the cost of asset over the estimated useful of the asset. The units of production method of depreciation allocates the depreciation based on the level of activity for which the asset is used in a particular year divided by the activity expected throughout the useful life of the asset.

The depreciation is calculated as follows,

Depreciation expense = (Cost - Salvage value) * Activity in units for the period/Activity in units over the total estimated useful life of the asset

Depreciation expense - May = (220000 - 60000) * 5000/800000

Depreciation expense - May = $1000

4 0
3 years ago
Barbara Jones is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market
nordsb [41]

Answer:

Zero-cupon bond= $612.52

Explanation:

Giving the following information:

Face value= $1,000

Number of periods= 5 years

Interest rate= 10.3% = 0.103

<u>To calculate the price of the bond, we need to use the following formula:</u>

<u></u>

Zero-cupon bond= [face value/(1+i)^n]

Zero-cupon bond= [1,000 / (1.103^5)]

Zero-cupon bond= $612.52

7 0
2 years ago
Other questions:
  • Apple has been working on what it believes is a revolutionary new technology. CEO Tim Cook is finally ready to showcase this tec
    8·1 answer
  • If a firm shuts​ down, it A. will earn enough revenue to cover its variable costs but not all of its fixed costs. B. will produc
    12·1 answer
  • On August 1, 2020, a company borrowed cash and signed a one-year interest-bearing note on which both the face value and interest
    7·1 answer
  • If you were opening a checking account at a local bank, what services would you expect your bank to provide?
    7·1 answer
  • Planning goals is a large part of self management t or f
    8·1 answer
  • What is 6 cubed so like 6 with exponent 3
    9·2 answers
  • Daves Inc. recently hired you as a consultant to estimate the company's WACC. You have obtained the following information: the f
    10·1 answer
  • List three market practices that the govemment<br> regulates or bans to protect competition
    7·1 answer
  • Match each component of a mortgage with its definition.
    11·1 answer
  • (17) What are the 3 predominant areas of a market opportunity analysis that we must take into consideration as Marketing Manager
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!