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
In-s [12.5K]
3 years ago
14

Company A has a shorter Average Collection Period than Company B using the formula 365 / (Credit Sales / Average AR Balance). Wh

ich of the following statements is true regarding these two companies?
Company A has a lower percentage of credit sales than Company B.Company A is more efficient in collecting receivables from customers than Company B.Company A is more efficient in generating revenue than Company B.
Business
1 answer:
Irina-Kira [14]3 years ago
3 0

Answer:

Statement B is correct

Explanation:

Provided Information that,

Company A has shorter Average Collection Period than Company B,

Average Collection Period refers to the period in which the cash is collected from debtors.

Thus in the given statements only statement B states that Company A is more efficient in collecting receivables from debtors, thus it is the correct statement.

Statement A is wrong as Company A has less Average Collection Period, thus it's credit sales percentage would be higher than Company B.

Statement C which states about generating revenue is not correct as the company might have cash sales.

Statement B is correct

You might be interested in
The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31, are as fo
agasfer [191]

Answer:

Using LIFO:

TOTAL Sales : $19,875,500

COGS = $11,021,250

GROSS PROFIT = $8,853,750

Explanation:

KINDLY CHECK ATTACHED PICTURE

4 0
3 years ago
balance sheet showed total assets of $60 million, total liabilities (including preferred stock) of $45 million, and 1,000,000 sh
Sati [7]

Answer:

The price per share should be $22.5

Explanation:

The price earnings multiple or P/E tells us how much price the investors are willing to pay for $1 earnings of the company.

We first need to calculate the earnings per share of the company.

Earnings per share = Net Income / Number of outstanding common shares

Earnings per share = 1500000 / 1000000  =  $1.5 per share

Using the P/E for the industry, the price per share of Flintstone should be,

P/E = Price per share / Earnings per share

15 = Price per share / 1.5

15 * 1.5 = Price per share

Price per Share = $22.5

6 0
3 years ago
Read 2 more answers
Deluxe Company has the following information: Total estimated manufacturing overhead costs $300,000 Total estimated machine hour
cluponka [151]

Answer:

its a formula, however long the machine is running the manufacturing rate will be higher thus increasing their income

Explanation:

7 0
3 years ago
Gabrielle does not want to work a nine-to-five job. Still, she has to work to support herself. She accepts a job as a restaurant
iren2701 [21]

Answer:

<em>Gabrielle's economic decisions best relate to broad economic goals by still having a job during the evening and still pursuing on doing artistic projects..</em>

7 0
3 years ago
Read 2 more answers
Do lenders always accept applications for credit?
Yakvenalex [24]
NO. Lenders doesn't always accept application for credit. They always perform investigation about the financial status of the applicant. Only once the financial status of the applicant is finished reviewed and passed, the application for credit will be accepted.
4 0
2 years ago
Other questions:
  • What changes over time depending on the rate of return?
    15·1 answer
  • ''what type of goods includes raw materials used to produce other products?''
    10·1 answer
  • All of the following would be listed as surplus items on the U.S. balance of payments international accounts except
    10·1 answer
  • If the percentage change in the quantity demanded of a good is greater than the percentage change in the price of the good, then
    6·2 answers
  • Dealing with competition from creation of a new productis an example of a(n) ____.
    15·1 answer
  • The following is a list of costs that were incurred in the production and sale of large commercial airplanes:___________.
    11·1 answer
  • When an organization adds up all the expenses for hiring five new engineers, including advertising costs, relocation costs, and
    15·1 answer
  • A business incurs a blank when expenses are higher then revenue
    13·1 answer
  • Rhonda Brennan found her first job after graduating from college through the classifieds of the Miami Herald. She was delighted
    7·1 answer
  • As with all managerial work, arts and
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!