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
Answer:
$64,000 and $358,000
Explanation:
The computation is shown below:
For land:
= Purchase price of land + Legal fees for contracts to purchase land + Demolition of old building on site - Sale of scrap from old building
= $60,000 + $2,000 + $5,000 - $3,000
= $64,000
For building:
= Construction cost of new building (fully completed) + Architects’ fees
= $350,000 + $8,000
=$358,000
Answer:
Option (B) If the market rate of interest is 10%, the bonds will issue at a discount
Explanation:
Interest rate risk is defined as the risk changing which, interest rates will affect bond prices. When current interest rates are greater than a bond's coupon rate, the bond will be sold below its face value at a discount. When interest rates are less than the coupon rate, the bond can be sold at a premium--higher than the face value.
government of the United is federal government and it borrows most of the money it needs by <span>selling Treasury Bills and Treasury bonds
so the correct option is B
because through taxes it cannot borrow and through issuing stocks not because its related to companies and of course govt don't take loan
hope it helps</span>
