At the point of sale, there is an increase in the effect on the cash flow of abc.
What is cash flow?
A cash flow is a real or virtual movement of money.
- A cash flow in its narrow sense is a payment (in a currency), especially from one central bank account to another; the term 'cash flow' is mostly used to describe payments that are expected to happen in the future, are thus uncertain and therefore need to be forecast with cash flows.
- A cash flow is determined by its time t, nominal amount N, currency CCY and account A; symbolically CF = CF(t,N,CCY,A).
- It is however popular to use cash flow in a less specified sense describing (symbolic) payments into or out of a business, project, or financial product.
- Cash flows are narrowly interconnected with the concepts of value, interest rate and liquidity. A cash flow that shall happen on a future day t(N) can be transformed into a cash flow of the same value in t(0).
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Answer:
B. Upward distortion
Explanation:
Based on the information provided within the question it can be said that this seems to be an example of upward distortion. In the context of business, this refers to when a lower employee fails to, or is hesitant to communicate negative information to his/her superiors due to the consequences. Which is what Enrique is doing in this scenario.
Answer:
$2,034,500 ; A
Explanation:
In this question, we are asked to calculate cost estimate.
One of the methods which we can use to do this is the cost factor technique.
Mathematically, the estimated total cost will be;
Ct = hCe
Where Ce refers to cost at major equipment and h is the overall cost factor.
From the question, we can identify the following;
Ce is $650,000 while h = 1.82 + 1 + 0.31 = 3.13
Inputing these values in the formula, we have;
Ct = $650,000 * 3.13 = $2,034,500
Answer:
No. Date Accounts titles and explanation Debit Credit
(a) Jan. 6 Accounts receivable $7,600
Sales $7,600
Jan. 16 Cash $7,296
Sales discounts($7,600 * 4%) $304
Accounts receivable $7,600
(b) Jan. 10 Accounts receivable $13,300
Sales $13,300
Feb. 12 Cash $6,650
Accounts receivable $6,650
Mar. 10 Accounts receivable $133
Interest revenue(6,650 * 2%) $133
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