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LiRa [457]
3 years ago
5

A firm's collection policy, i.e., the procedures it follows to collect accounts receivable, plays an important role in keeping i

ts average collection period short, although too strict a collection policy can reduce profits due to lost sales.
a) true
b) false
Business
1 answer:
kramer3 years ago
3 0

Answer:

a) true

Explanation:

The average collection period could be computed by

= Total number of days in a year ÷ account receivable turnover ratio

It determines the number of days in which the customers pay the amount to the company.

If the payment is made within the prescribed time or early so it shows the goods performance else it reflects the worst performance

Therefore according to the given situation, if there is strictness in collection policy which ultimately reduced profit due to lost sales plays a very important role in shorten the collection period

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daily enterprises is purchasing a $10 million machine. it will cost $50,000 to transport and install the machine. the machine ha
kupik [55]

The machine's annual depreciation costs are calculated by dividing the machine's purchase price by its installation cost over a 5-year period:Depreciation costs equal (10,700,000 + 56,000) / Number of Years divided by five, or $2,151,200.

The value of a fixed asset less the total accumulated depreciation that has been recorded against it is its depreciated cost. The total amount of capital that is "used up" in a certain time frame, such as a fiscal year, is referred to as the depreciated cost in a broader economic sense. The accuracy with which depreciation is calculated allows one to assess patterns in a company's capital expenditures and how aggressive its accounting practices are. The terms "salvage value," "net book value," and "adjusted cost base" are all synonyms for "depreciated cost." Businesses and private individuals can calculate an asset's useful worth using the depreciated cost technique of asset appraisal.

learn more about depreciation costs here:

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7 0
1 year ago
What can happen when the united states government plays a direct role in the economy? Select all that apply.
solniwko [45]

The answer is (A) It competes with private business and (C) It acts as an employer.

In a way, the United States government already has direct role in the economy right now, since it has businesses such as the US Postal Service – which competes with private businesses that provide logistics support for customers, such as FedEx. Since it has businesses, the government automatically also plays the role of an employer.

4 0
3 years ago
Read 2 more answers
Tony and Suzie see the need for a rugged all-terrain vehicle to transport participants and supplies. They decide to purchase a u
aliina [53]

Answer:

Great Adventures

Journal Entries on July 1, 2022:

Debit Equipment Account with $12,000

Credit Cash Account with $12,000

To record the purchase of a used Suburban.

Debit Vehicle Insurance with $1,800

Credit Cash Account with $1,800

To record payment of one year vehicle insurance.

Debit Equipment Account with $3,000

Credit Cash Account with $3,000

To record the payment for repainting and placing logo.

Debit Equipment Account with $2,000

Credit Cash Account with $2,000

To record deluxe roof rack and trailer hitch on the vehicle.

Maintenance on October 22:

No Journal Entry Required in July.

Explanation:

a) The initial amount spent to purchase the vehicle is capitalized, i.e. recognized in the asset's account (Equipment Account).

b) Vehicle insurance is not capitalized.  It is a period cost that should be recognized in the income statement.

c) Repainting and putting logo on the vehicle is capitalized because it adds to the value and brings the vehicle to its use.  All expenditure that helps to bring an asset to its use and increases the future value is capitalized.

d) The deluxe roof rack and trailer hitch is also capitalized since they increase the future benefits of the vehicle.

7 0
3 years ago
Jones, a consulting manager of Miller & Co., is considering membership on an audit client’s board of directors. Jones does n
lord [1]
<span>The AICPA rules would enforce that he is not allowed to join the board since he would be considered a firm professional. This would prevent a conflict of interest where he would serve as a director of a client. The AICPA is the American Institute of Certified Public Accountants.</span>
5 0
3 years ago
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Upon taking over the company, CEO Khosrowshahi said, "Rather than ditching everything, I'm focused on preserving what works whil
nata0808 [166]

Answer: b. evidence-based

Explanation:

Evidence based management refers to the use of pragmatism in the making of decisions and basing those decisions on actual evidence.

The new Uber CEO Khosrowshahi, decided to hold meetings with the staff in other to get to find out what they thought was wrong with the company and then using this evidence he decided to preserve what worked and remove what doesn't. He therefore used evidence in his decision.

4 0
2 years ago
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