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Svet_ta [14]
2 years ago
11

Profit Inc., a manufacturing firm, has purchased raw materials worth $10,000 on credit from its vendors. The business plans to s

ettle the vendor’s full payment after two months. Under which section of a balance sheet will this amount be recorded as “accounts payable”?
A.
current assets
B.
current liabilities
C.
long-term liabilities
D.
owners’ equity
Business
2 answers:
andrezito [222]2 years ago
8 0

Profit Inc., a manufacturing firm, has purchased raw materials worth $10,000 on credit from its vendors. The business plans to settle the vendor’s full payment after two months. Under "current liabilities"section of balance sheet this account will be recorded as "account payable".

Answer: Option (B) is correct

<u>Explanation:</u>

Raw material purchased on credit from a vendor is a liability and it is shown under current liabilities in "accounts payable". Since raw material purchased on credit and payment is to be made after two months.

Payment due gives rise to liability. Now current liability is a company's short term obligations that are to be paid back within a year. Here the firm will have to make payment within two months to the vendor.

Ivahew [28]2 years ago
8 0

Profit Inc., a manufacturing firm, has purchased raw materials worth $10,000 on credit from its vendors. The business plans to settle the vendor’s full payment after two months. In a balance sheet this amount be recorded as “accounts payable” is

A.

current assets

Explanation:

  • Profit Inc., a manufacturing firm, has purchased raw materials worth $10,000 on credit from its vendors. The business plans to settle the vendor’s full payment after two months. In a balance sheet this amount be recorded as “accounts payable” is
  • A.  current assets
  • Current assets shows all the assets of a company that are expected to be  sold, consumed, utilized or exhausted through the standard business  rules and operations.
  • Current assets includes the following entries,
  • cash,
  • cash equivalents,
  • accounts receivable,
  • stock inventory,
  • marketable securities,
  • pre-paid liabilities, and other liquid assets.
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Gnesinka [82]

Answer:

The correct answer is C

Explanation:

Competitive disadvantage is the described as the situation or circumstance which is unfavourable and it causes the firm or business to under perform the industry .

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2 years ago
Cindy invests $10000 in an account that pays an annual rate of 3.96%, compounding semi-annually. approximately how much does she
stiks02 [169]

Annual Compound Formula is:

A = P( 1 + r/n) ^nt

Where:

A is the future value of the investment

P is the principal investment

r is the annual interest rate

<span>n is the number of  interest compounded per year</span>

t is the number of years the money is invested


So for the given problem:

P = $10,000

r = 0.0396

n = 2 since it is semi-annual

t = 2 years

 

Solution:

A = P( 1 + r/n) ^nt

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6 0
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Caribbean Reef Software has 8.4 percent coupon bonds on the market with 9 years to maturity. The bonds make semiannual payments
Zepler [3.9K]

Answer:

9.14%

Explanation:

Calculation for YTM

First step is to use financial calculator to find the I which represent Interest rate

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