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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

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Thomas purchased 2,500 shares of EKK stock for $135,000 one year ago. The stock pays annual dividends of S.30 a share. Today, Th
Anastaziya [24]

Answer:

His return on investment is negative 8.7%

Explanation:

Thomas purchased 2,500 shares of EKK at $54 per share (=$135,000 / 2,500).

He received $750 (= $0.30 x 2,500) in annual dividends.

He sold his 2,500 shares at $49 per share = $122,500

The total amount of money he received from his investment is $122,500 + $7

50 = $123,250, then we divide that by $135,000 = 0.913 - 1 = -8.7%

8 0
4 years ago
Full-service banks are authorized to conduct business without a license granted by the federal or state government.
mixas84 [53]

Answer:

B

Explanation:

(c) Any person who engages in the business of money transmission without a license as provided herein shall be guilty of a felony and, on conviction thereof, shall be fined not more than $25,000, or imprisoned for not more than 5 years, or both. (July 18, 2000, D.C. Law 13-140, § 24, 47 DCR 3431.) § 26–1024. Promulgation of rules.

I hope this helped.

7 0
3 years ago
The _______ has rapidly become part of the culture in the United States and elsewhere, as people increasingly consider the impac
elixir [45]

Answer:

The correct answer is Green Movement.

Green Movement can be described as a part of the increased awareness of sustainability by the consumers. NOW, RATHER THAN LOOKING ONLY AT THE END PRODUCT, CONSUMERS tends to LOOK at the PRODUCTION PROCESS of the product. and evaluate whether its harmful to the nature, people and the communities and only then buy it if it is a good product made out of sustainable business practices and processes.

Explanation:

4 0
3 years ago
Read 2 more answers
Multiple answers
a_sh-v [17]

Answer:

the and is 3

Explanation:

it is related to headhunter

7 0
3 years ago
Mary signed up and paid $1,260 for a 6 month ceramics course on June 1st with Choplet Ceramics. As of August 1st, Choplet’s acco
Karo-lina-s [1.5K]

Answer:

Answer:

$420 of revenue, $840 of deferred revenue

Explanation:

Data provided in the question

Paid amount = $1,260

Given months = 6 months

Number of months = 2 months

For two months, the revenue is

= Paid amount × number of months ÷ given months

= $1,260 × 2 months ÷ 6 months

= $420

Now the deferred revenue is

= Paid amount - revenue

= $1,260 - $420

= $840

Hence, the revenue is $420 and the deferred revenue is $840

6 0
3 years ago
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