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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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An investment has the following payment structure: 1,000 payable in one year, 1,000 payable in two years, and 1,000 payable in t
Shtirlitz [24]

Answer: C. 7.3%

Explanation:

The yield rate is a weighted average of the yields over the years:

= [ (1 * 6%) + (2 * 7%) + (3 * 8%)] / ( 1 + 2 + 3)

= 44%/ 6

= 7.33%

= 7.3%

3 0
3 years ago
The following refers to units processed by a breakfast cereal maker in August. Compute the total equivalent units of production
masya89 [10]

Answer:

Total Equivalent Units Conversion    746,000

Explanation:

Breakfast Cereal Maker

Weighted-Average Inventory Method

Total Equivalent Units

                                     Units               Conversion     Equivalent Units

Particulars                                                   %

Units completed         620,000               100 %             620,000

<u>Add Ending WIP          180,000                70 %               126,000</u>

<u>Total Equivalent Units                                                      746,000</u>

<u />

<em>The total Equivalent units are obtained by adding the percent of the units in the ending work in process inventory to the units completed and transferred out. This is the average weighted method of finding the equivalent units.</em>

<em>As only conversion is required we found out the conversion units only.</em>

3 0
3 years ago
Which organization developed and published the first curriculum that served as the guideline for EMT training?
bazaltina [42]

Answer:

Department of Transportation (DOT)

Explanation:

Department of Transportation can be regarded as one department in the government of U.S that are in charge of transportation. It started operation in 1967. It should be noted that the Department of Transportation (DOT) developed and published the first curriculum that served as the guideline for EMT training?

3 0
3 years ago
​you are part of an information systems project team. your job is to ensure that the technology and vendor suggested for use in
Natalka [10]
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5 0
3 years ago
Difference between money paid to and money received from other nations in trade is called balance of trade.
frutty [35]

<u>Answer:</u>

Difference between money paid to and money received from other nations in trade is called balance of trade is a <u>TRUE</u> statement.

<u>Explanation:</u>

The difference between the export and the import done by the country is usually termed as the balance of trade. Even though the sum of payments and receipts is necessarily equal, in different types of transactions there will be disparities — excesses of transactions and receipts, named deficits and surpluses.

Trade balance does not include any goods (not even product import and export). For example, China, a nation where many of the globe's consumer goods are manufactured and exported, has registered a trade surplus since 1995. Because of its dependence on oil imports and consumer goods, the United States has shown a trade deficit since 1976.

6 0
3 years ago
Read 2 more answers
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