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tatuchka [14]
3 years ago
14

IBM signs an agreement to lend one of its customers $200,000 to be repaid in one year at 5% interest. IBM would record this loan

as: A. Notes Payable. B. Notes Receivable. C. Accounts Receivable. D. Unearned Revenue.
Business
1 answer:
Olenka [21]3 years ago
4 0

Answer:

B. Notes Receivable.

Explanation:

Since the company is signed an agreement for lending out of its customers for $200,000 that could be repaid in one year at 5% interest so it is not revenue not note payable and also not account receivable

Therefore it is a note receivable

Hence, the option b is correct

and, the same is to be considered and relevant

You might be interested in
An audit basically consists of having the auditor form an opinion regarding management's financial statement assertions. The aud
Anika [276]

Answer:

C. Tracing sales invoices to shipping documents to test the occurrence of reported sales.

5 0
3 years ago
Becky Knauer recently resigned from her position as controller for Shamalay Automotive, a small, struggling foreign car dealer i
andre [41]

Answer:

1. The ethical issue here is that Becky Knauer's new boss usually bribes the sales manager of a car dealership to get more quota of cars. He is doing this because the car is in high demand. The higher his quota, the higher the number of cars. The higher the number of cars, the more of them he can sell. The more he can sell, the higher the profits.

Here is the dilemma.  

First, the action of Becky's boss is wrong, but it is also helping to keep the business afloat thus translating to securing her job and probably sustaining the pay she is receiving. We know this because Becky's former employer who receives just 25 cars a month is not very profitable.  

Becky as the Controller, however, is in charge of Compliance. The actions of her boss are unethical. She has to flag such issues and report to him.

Franz is the owner of the dealership and is on the top of the 'food chain'. There is no one else within the organisational structure to report the matter to. He is supposed to lead by example. He, as the owner of the organisation, however, is leading with a bad example because other sales personnel know about these shady transactions.

2.  Becky's options are as follows:

A. If she is too scared to confront her boss, she can decide to resign. She would have lost her job. There is no guarantee she will get another and the unethical practices will continue.

B. She can raise the issue with her boss and point out the dangers of continuing in such practice. By doing this, she is ruling out the possibility that he somehow is unaware of the dangers of his actions. In raising the matter with her boss, she must do this in black and white.

The above decision can go either left or right.  

Right means that her boss comes to understand the import of his actions and makes amends. Left means, he gets jittery and fires her.

3. As stated above, Franz may fire Becky if she flags his actions.

If this happens, she can take the matter to the State of New Jersy Motor Commission and possibly sue Franz for wrongful dismissal.      

Cheers!

3 0
3 years ago
Swifty Company's accounting records show the following at the year ending on December 31, 2022: Purchase Discounts $ 11300 Freig
Juli2301 [7.4K]

Cost of goods sold (Periodic System) = Beginning inventory + (Purchases, net of returns and allowances, and purchase discounts) + freight in − Ending inventory .

COGS = Cost of goods sold

COGS = 46200+(401100-13500-11300)+16000-57900

COGS = 380600

The total sum that your company spent on expenses directly associated with the selling of goods is known as the cost of goods sold. Depending on the nature of your firm, this could also include raw materials, packaging, direct labor involved in making or selling the product, and items bought for resale.

First In First Out (FIFO), Last In First Out (LIFO), and the Average Cost Method are the three techniques that a business might employ when tracking the amount of inventory sold over a given time period.

Learn more about cost of goods sold here

brainly.com/question/17205761

#SPJ4

7 0
2 years ago
Pompeii, Inc., has sales of $46,200, costs of $23,100, depreciation expense of $2,200, and interest expense of $1,700. If the ta
ycow [4]

Answer:

The net operating cashflows are 18,876 dollars.

Explanation:

Operating cashflows are cashflows which an entity generates from it core operations. In other words cash flow related to investment and finance activities do not form part of an entity operaing cashflows.

So in this example interest will not be part of operating cashflows.

For more details please refer to below given calculations.

OCF

Sales       46,200

Cost         (23,100)

Tax            (4,224) (W-1)

OCF          18,876

(W-1)  Calculating profit to find tax paid

(46,200-23,100-2,200-1,700)*22%

5 0
4 years ago
Elliott Credit Corp. wants to earn an effective annual return (EAR or EAIR) on its consumer loans of 17.1 percent per year. The
Yuri [45]

15.79 % is the rate that bank is requred to give to potential borrowers

<u>Explanation:</u>

\mathrm{EAR}=(1+\mathrm{APR} / \mathrm{m})^{\mathrm{m}}-1

A P R=m\left[(1+E A R)^{1 / m}-1\right]

\mathrm{APR}=365\left[(1+.171)^{1 / 365}-1\right]

A P R=365\left[(1.171)^{0.00273972602}-1\right]

\mathrm{APR}=365 *[1.00043258-1]

A P R=365 * 0.00043258, APR = 0.1578917  

Or 15.79% (it is rounded off )

<u>Where: </u>

EAR = effective annual rate

APR = Annual percentage rate

M = number of compounding

Therefore, the interest of rate that the bank is required by law in order to report to all the potential borrowers is 15.97%

4 0
3 years ago
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