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SIZIF [17.4K]
3 years ago
10

Lapping is best described as the process of________.

Business
1 answer:
Mamont248 [21]3 years ago
5 0

Answer:

b. applying cash receipts to a different customer's account in an attempt to conceal previous thefts of cash receipts is the correct answer.

Explanation:

  • Lapping is best described as the process of applying cash receipts to a different customer's account in an attempt to conceal previous thefts of cash receipts.
  • Lapping is an illegal mode of allotting one consumer's cash to another consumer's account.
  • Lapping usually occurs in smaller businesses where a single person manages payment receipts and consumer billing.
  • Companies can stop and check lapping through conducting regular inspections of payment receipts and also by dividing cashier and billing tasks.

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The Assembly Department started the month with 25,100 units in its beginning work in process inventory. An additional 310,100 un
Murljashka [212]

Answer:

315,000 Transferred-out

Explanation:

25,100 beginning WIP

+310,100 transferred in

-30,100 ending WIP

315,000 Transferred-out

The tranferred-in are units that comes into this process from a previous process.

Transferrred-out are the units that leave the process to another process or to finished goods inventory.

8 0
3 years ago
Which business letter feature is found at the top of the page?
Serggg [28]

The heading goes at the very top of the page, along with your name and address. So heading is correct. Good luck.

3 0
3 years ago
Read 2 more answers
Which of these is an example of a shortage?
AveGali [126]
Answer:

“Water cannot be used for certain crops because you are using it on others.”

Explanation:

The first and second option aren’t shortages. It just shows that no one is around to do any business. So the first 2 options are incorrect. The third option isn’t correct either. No items would be unavailable because they were shipped. If items were shipped, it would be a gain for a certain amount of time for people.
4 0
2 years ago
In the chapter, we used Rosengarten Corporation to demonstrate how to calculate EFN. The ROE for Rosengarten is about 7.3 percen
satela [25.4K]

Answer:

Explanation:

Sustainable Growth:

The maximum growth rate a firm can achieve with no external equity financing while maintaining  a constant debt-equity ratio is known as Sustainable Growth Rate. It is the maximum rate of  growth a firm can maintain without increasing its financial leverage.

The formula for finding out the sustainable growth rate is:

sustainable\, grwth\, rate=\frac{ROE \times b}{1-ROE \times b}

Where

ROE — Retum On Equity

b — plowback or retention ratio

ROE is the product of profit margin, total asset turnover and equity multiptier.

External Financing Needed (EFN) is the increase in assets minus the addition to retained

earnings.

EFN = Increase in assets - Addition to retained earnings

The increase in assets is the product of the beginning assets and the growth rate.

Increase in assets = Beginning assets x growth rate

The addition to the retained earnings next year is the product of current net income and the

retention ratio and one plus growth rate.

Addition to retained earnings = Current net income x retention ratio x(1+ growth rate)

The ROE of Rosengarten Corporation is 7.3%, plowback ratio is 67%. Then, the sustainable  growth rate is 5.14% only. The question is whether a growth rate of 25% can be used to calculate  the EFN (External Funds Needed).

The growth rate of 25% can be used to calculate the EFN. The sustainable growth rate formula is

based on two assumptions that the company does not want to sell new equity, and that the  financial policy is fixed. If the company rises outside equity, or increases its debt-equity ratio. it  can grow at a higher rate than the sustainable growth rate.

A firm's ability to sustain growth depends on the following four factors:

1. Profit Margin: An increase in profit margin will increase the firm's ability to generate funds

internally and thereby increase its sustainable growth.

2. Dividend policy: A decrease in the percentage of net income paid out as dividends will

increase the retention ratio. This increase internally generated equity and thus increases

sustainable growth.

3. Financial policy: An increase in the debt-equity ratio increases the firm’s financial leverage.

Since this makes additional debt financing available, it increases the sustainable growth rate.

4. Total asset turnover: An increase in the firm's total asset turnover increases the sales  generated for each dollar in assets. This decreases the firm’s need for new assets as sales grow  and thereby increases the sustainable growth rate. The increasing total asset turnover is the

same as decreasing capital intensity.

The sustainable growth rate illustrates the explicit relationship between the firm's four major  areas; its operating efficiency as measured by profit margin, its asset use efficiency as measured  by total asset turnover, its dividend policy as measured by the retention ratio, and its financial  policy as measured by the debt-equity ratio.

Thus, the company could also grow faster when its profit margin increases, it it changes its dividend policy, by increasing the retention ratio or by increasing its total asset turnover.

7 0
3 years ago
Depreciation on the company's equipment for the year is computed to be $18,000. The prepaid insurance account had a $6,000 debit
scZoUnD [109]

                       Depreciation Expense............................$18000

                                To Accumulated Depreciation............................$18000

(Being depreciation expense accounted)

                     Insurance Expense................................$4900

                               To Prepaid Insurance...........................................$4900

(Being Insurance Expensed)

                         Supplies Expense..............................$3880

                                 To Supplies.......................................................$3880

(Being Supplies Consumed Expensed)

                     Unearned Service Revenue.......................$10000

                           To Service Revenue..................................................$10000

(Being Unearned Service Revenue Recognised)

                        Rent Expense...............................$5800

                                 To Prepaid Rent......................................$5800

(Being rent expired Expensed off)

                     Wages Expense..............................$3200

                              To Wages Payable....................................$3200

(Being Wages payable expensed).

3 0
3 years ago
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