An increase in cash would definitely placed in debit because it considered an asset and we need to place the increase of sales on the credit side.
So, in this case, the entry would be
Cash $ 30,250
Sales $ 30.250
Answer:
E) Both the accounts receivable and the accounts payable periods
Explanation:
The account receivable and the accounts payable affect the length of the cash cycle. This is because, the longer the cash cycle, the more likely a firm will need external financing.
Answer:
B. Consolidation
Explanation:
Consolidation (or amalgamation), in a bussines context, is <em>when different companies combine to form a larger organization in order to improve their efficiency, long-term cost savings and a concentration of market share.</em>
I hope you find this information useful and interesting! Good luck!
Answer:
(a) Operating activity
(b) Financing activity
(c) Operating activity
(d) Investing activity
Explanation:
Basically there are three types of activities:
1. Operating activities: It includes those transactions which affect the working capital, and it records transactions of cash receipts and cash payments.
2. Investing activities: It records those activities which include purchase and sale of the fixed assets
3. Financing activities: It records those activities which affect the long term liability and shareholder equity balance.
So,
(a) Increase in accounts receivable come under the operating activities, and this is to be in a negative amount
(b) Issue of preference shares comes under financing activity, and this is added while computing the financing activities
(c) The depreciation expenses are added in the net income whereas the bond premium amortization is to be deducted from the net income. These both items have come under operating activities
(d) An increase in land value comes under the investing activity.
Answer:
the net impact on these items is $5,000 gain
Explanation:
The computation of the net impact on these items is as follows;
Net effect is
= Gain - Loss - suspended loss
= $50,000 - $15,000 - $40,000
= $5,000 gain
hence, the net impact on these items is $5,000 gain
We simply applied the above formula so that the correct value could come
And, the same is to be considered
