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4 years ago

In order to achieve a negative cash conversion cycle a firm would want to:

Business

1 answer:

faltersainse [42]4 years ago

8 0

Answer:

A. increase its account payable period and its inventory turns

Explanation:

Negative cash conversion cycle means that a company uses less time to sell its inventory or requires less time to produce products from raw materials. It also uses less time to recieve cash from its customers compared to the time it uses to pay cash it owes.

So if a company is to have a negative cash conversion cycle it will need to increase the time it takes to pay parties it owes.

This will result in more cash reserves and returned cash it can use to purchase more products. Therefore number of inventory turnover will increase.

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disa [49]

Answer:

C, a primary form of corporate giving

Explanation:

Corporate giving can be defined as gifts or donations made by a corporation to its environment.

It can also be said to be the social and/or philanthropic contributions of a corporation to its environment.

Clause-related marketing is one in which a corporation uses its activities to market another corporation.

This type of marketing is an form of corporate giving as it helps to put focus on the other company through its own activities in that company.

Cheers.

4 0

3 years ago

To be competitive firms must create and sustain core competencies that are in tune with their customer’s order winners (T/F)

Jobisdone [24]

Answer:

The statement is: True.

Explanation:

Order winners are those products that customers recognize of having the minimum requirements so they can consider to purchase them and that are better than their competitors eventually making consumers buy them. Thus, firms must keep core competencies aligned to the customers' order winners.

8 0

3 years ago

Which of the following best describes a player's role in any game?

iren [92.7K]

D. The actions expected of him or her.

7 0

3 years ago

In 2013, Chandler Company had net credit sales of $1,125,000. On January 1, 2013, Allowance for Doubtful Accounts had a credit b

mezya [45]

Answer:

Debit : Bad Debts = $33,000

Credit : Allowance for doubtful debts = $33,000

Explanation:

The question states that the allowance for doubtful debts are expected to be 10% of the accounts receivables. As at 31 December, accounts receivables is $330,000

This means that the allowance for doubtful debts is it is: $330,000 x 10%= $33,000

An account for allowance for doubtful debts is a contra account created, predicting that certain debtors will not be able to pay for the goods and services they purchased. The 10% may be based on historical experiences. Doubtful debts aren’t officially uncollectible, it is simply an estimation made, but bad debts are, where you have officially written off a certain accounts receivable as uncollectible.

An allowance for doubtful debts is recorded in the balance sheet, directly under accounts receivables. Bad debts are recorded as an expense in the income statement.

The entry to record the above transaction is:

Debit : Bad Debts = $33,000

Credit : Allowance for doubtful debts = $33,000

When the amount is officially declared uncollectible, the allowance for doubtful debts account will be debited and the accounts receivables account will be credited.

3 0

4 years ago

Al owned all of the outstanding stock of ABC Corporation. Al transferred a building, cash, and IBM stock to ABC Corporation. The

Xelga [282]

Answer: $10,000

Explanation:

I know this question looks like a lot but it isn't. It is simply asking how much gain was made in the cash that was exchanged.

Now we see that the company acquired the building for $50,000 but acquired the mortgage on it of $40,000 and hence paid off the balance of $10,000 to Al.

So the gain was,

Cash in the amount transferred = (fair market value - mortgage)

= $50,000) - $40,000

= $10,000

$10,000 is the gain that Al should recognize as a result of this transaction.

5 0

4 years ago