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3 years ago

Which of the following could be true if one decreases their long term liability and increases their liquid assets?

Business

2 answers:

Katarina [22]3 years ago

8 0

Answer:

C on edgenuity

Explanation:

hodyreva [135]3 years ago

6 0

There are two of these that could be true. In order to decrease long term liability you have to pay off a debt you owe, and in order to increase your liquid assets you have to acquire more cash or anything that could be easily transferred into cash. If you pay off your credit card balance you are paying off your long term liability, and if you add money to savings you are increasing your liquid assets. At the same time if you pay down your mortgage you are decreasing your long term liability, and if you receive a cash prize you are increasing your liquid assets.

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Zephron Music purchased inventory for $4,400 and also paid a $260 freight bill. Zephron Music returned 25% of the goods to the

asambeis [7]

Answer:

Cost of the inventory kept by Zephron Music is $3495

Explanation:

Zephron Music purchased inventory for $4,400 and also paid a $260 freight bill

Inventory $4660 (debit)

Trade Payable $ 4400 (credit)

Bank $260 (credit)

Recognise an Asset - Inventory and De-recognise asset - Bank

Zephron Music returned 25% of the goods to the seller, took a 1% purchase discount

Trade Payable $1212

Inventory $1165 (credit)

Discount Received $47 (credit)

Therefore Inventory Balance = $4660-1165 = $3495

6 0

3 years ago

What steps should e taken if the results do not support the hypothesis?

lys-0071 [83]

More information please

6 0

3 years ago

Cash Flow:

ss7ja [257]

Both y and x is the correct answer

3 0

3 years ago

A company's chart of accounts is: a detailed list of the accounts that make up the five financial statement elements. the set of

polet [3.4K]

Answer:

A detailed list of the accounts that make up the five financial statement elements.

Explanation:

The company's chart of accounts is the listing of all the accounts that the company has included as part of the five financial statement elements during a specific period of time.

The five financial statement elements are: assets, liabilities, equity (part of the balance sheet), expenses and revenues (part of the income statement).

Examples of accounts that can be part of a firm's chart of accounts are: land (asset), cash (asset), notes payable (liabilities), outstanding stock (equity), operating expenses (expenses), and sales revenue (revenues).

The chart of accounts can differ greatly from company to company simply because companies engage in vastly different economic activities.

8 0

3 years ago

Dome Metals has credit sales of $270,000 yearly with credit terms of net 90 days, which is also the average collection period. A

bixtya [17]

Answer:

Net change in income = $8,100

Explanation:

Given:

Current credit sales= $270,000 per year.

Average collection period= 90 days

A 2/15, net 90 means a 20℅ discount if payment is made within 15 days.

Which means new credit terms increase will be

(90/15) * 20℅ = 120℅

We now find the following:

•Revised sales will be = (current sales * new credit terms increase)

= $270,000 * 120℅ = $324,000

•Increase in sales = ( new sales - current sales)

=$324,000 - $270,000 = $54,000

•Profit increase = (profit percent * Increase in sales)

= 15℅ * $54,000 = $8,100

• Average receivable under existing policy =

= $270,000 * (90/360) = $67,500

• Average under new policy =

$325,000 * (15/360) = $13,500

• Receivable reduction= $67,500 - $13,500 = $54,000

• Interest savings

= $54,000 * 12℅ = $6,480

• Cost of discount =

$324,000 * 2℅ = $6,480

Therefore the net change in income if new credit terms are adopted will be = (increase in profit + interest savings - cost of discount)

= $8,100+$6,480-$6,480

= $8,100

3 0

3 years ago