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bagirrra123 [75]
3 years ago
15

Assume a contract for the sale of goods specifies that payment is to be made four months after delivery of a product. The seller

is likely to do which of the following, with respect to the time value of money over the life of the contract?A) Recognize interest expense.B) Recognize additional cost of goods sold.C) Ignore the time value of money.D) Recognize interest revenue.
Business
1 answer:
tatuchka [14]3 years ago
4 0

Answer:

correct option is D) Recognize interest revenue.

Explanation:

  • Interest income is the income that a company receives from any investment or on its own debt and every penny taken on a logistic investment or loan is believed to pay some interest. Items sent to the buyer usually become debt that needs to be added without wires.
  • so due to the position in the contract that the payment will be made four months later, the concept of time value of money is the basis of the interest income formula.
  • Time value of money is a basic economic concept that involves the present money rather than the future money. This is true because the money you have at the moment can be invested and earned so that you can make a large amount of money in the future.
  • If a party is asked to forfeit the time value of money in a business transaction, it must be compensated, hence the interest revenue.
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If 5 Swiss francs trade for $1, the U.S. price level equals $1 per good, and the Swiss price level equals 2 francs per good, the
nordsb [41]

Answer:

0.4 swiss good(s) per U.S good(s)

Explanation:

firstly we calculate how many dollars we get per Frank so we will say $1/ 5 Swiss Franks =$0.2 which is similar to (5x =1, solve for x =1/5 / 0.2 in simple maths )per Swiss Franc thereafter we calculate the how many Swiss Francs per good compared to dollars per good we can get so therefore 2 Swiss Francs per good/$1 per good is the ratio of comparison , hence we treat f(X) as a function of swiss good(s) per U.S good, therefore f(X)= 2 x , knowing that x= 0.2 f(x)= 2(0.2) which will result in f(x)= 0.4.

3 0
3 years ago
Read 2 more answers
On January 1, 2020, Bonita Company purchased 12% bonds, having a maturity value of $320,000 for $344,260.74. The bonds provide t
Delvig [45]

Answer:

Following are the responses to the given points:

Explanation:

For point a:

Criteria I                                    

Date: 1-1.2020                 Debt Investments                    \$3,44,260.74

                                         cash                                       \$3,44,260.74

For point b:

Criteria  II

Date: 31.12.2020                Interest Account receivable to pay \$38,400.00   \ \ \ \ \ \ \ \ \ \            320000\times 12\%

                                    Debt Investments   \$3973.93

                                   rate of Revenue          \$34,426.07(\$344,261.74 \times 0.10)                                        

31.12-2020                         Fair Value Adjustment                        1713.19

                       Gain or loss - equity unrealized holding          1713.19                          

for point c:

Criteria III

31.12-2021                       Interest Account receivable to pay          \$38,400            

                                    Debt Investments                              \$4,371

                                   rate of Revenue                       \$34,029

 

31.12-2021                   Gain or loss - equity unrealized holding    \$7,927.69

                                   Fair Value Adjustment                          \$7,927.69

                                329700-335914.50=6214.50+1713.19 =7,927.69

Please find the attached table.

8 0
3 years ago
Coffee and tea are substitutes for consumers. An increase in the price of coffee coupled with an increase in the number of tea g
hammer [34]

Answer:

Explanation:

As the coffee prices are relative higher than what it actually ends up paying, person will pay above their face value to obtain. Same will apply  the same idea for that concept.

As tea is also icnreases we will pushed there.

In the long term we should review how this is done as usually end up here and allone

Therefore the compete sentences will be:

An increase in the price of coffee coupled with an increase in the number of tea growers the lower adverzare will occur within a year Also, we could check for it at 12.600

6 0
3 years ago
List at least six possible areas that might be included on an externship evaluation form.
Gwar [14]

Answer:

•Initiative

•Administrative task

•Maturity

•Appearance

•Attitude

• Dependability

Explanation:

Externship is a programme offered to college students which forms part of their work experience in relation to their course of studies. It affords student to have work experience during their educational study.

The externship evaluation form is a form used by supervisors to assess the performance of students who have undergone externship programme. It contains areas such as how matured is the student on the job, gives explanation of the student's appearance throughout the programme. It also confirms whether the student is dependable based on his experience during the programme, how well the student makes use of his initiative without being told what to do etc.

8 0
3 years ago
Even though dan writes neatly and legibly, it takes him a very long time to write a few sentences. which strategy may help dan w
Nadya [2.5K]
I would say that Dan should learn how to type with a keyboard instead of by hand as I know that with practice one can learn to type quite fast and with a keyboard one doesn't need to worry about writing neatly or legibly since all the letters and numbers are pre-determined and always the same.
7 0
3 years ago
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