Answer:
C.Prepaid Insurance
Explanation:
Prepaid Insurance is the insurance amount paid in advance, so that company has a receivable because amount is not due yet. It will charged to expense account with the passage of time. Notes Payable, Unearned Revenue, Owner Withdrawals are classified as liabilities and capital contra accounts. So correct option is C. Prepaid Insurance.
Complete Question:
Akram owns a small farm.He employs 80 workers in the field and has recently hired a manager to help him manage the farm. The income of the business varies greatly during the year. The farm makes a small profit but Akram is ambitious. He wants to take over a neighbors farm and increase the range of crops he sells. He thinks that he needs long-term finance and plans to take out bank loan to pay for the takeover. He has already borrowed money to buy a new tractor. A friend has advised him to form a company and sell shares.
Requirement. Identity two types of short-term finance Akram could use when the farm income is low
Answer with its Explanation:
The two types of short term finances are as under:
- Merchant Cash Advance: It is also known as supplier payables but in fact it is actually an cash advance by supplier to promote its sales by allowing credit for a short term. It doesn't what level of profits the company is earning, the supplier always allow small period for payment of its goods.
- Invoice Financing: It helps the company borrow money from money lenders (mostly banks) against the debtors accounts. This is usually a short term loan with option to expand both time and money if the company has proven to growth and better credit control. The invoice finacing doesn't effect the borrowings in short term if the business profits are low because for qualifying for such loan the company must have better cash postion. Though higher profits might help in securing the short term loan by using invoice financing but cash generation is the key requirement here.
<span>In the United States, it is only about 50% of employees who work a traditional work schedule of 9:00 to 5:00, Monday through Friday. The rest of the American workforce work other shifts, including nights, weekends and part-time hours.</span>
The future amount of an investment with compound interest can be calculated through the equation,
F = P x (1 + ieff)^n
where F is the future amount, P is the current value of the money, ieff is the effective interest (rate per year), and n is the number of years.
From the equation, all are given except for the effective interest, i. Now, substituting the known values,
14,398.87 = (7,775) x (1 + ieff)^14
The value of ieff from the equation is 0.044999.
Since the value of the ieff when translated to percentage is equal to 4.5% as well, the interest rate is compounded yearly.
Answer:
$784,700
Explanation:
Data provided
Revenue from sales = $762,000
Decrease in accounts receivables = $22,700
The computation of cash received from customers is shown below:-
Cash receipts from customers = Revenue from sales + Decrease in accounts receivables
= $762,000 + $22,700
= $784,700
Therefore for computing the cash received from customers we simply applied the above formula.
