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gayaneshka [121]
3 years ago
6

What are the accounting differences between cash and receivables from the perspective of a buyer? A seller? How are these differ

ences changed by the accounting basis (cash vs. Accrual) an organization chooses?
Business
1 answer:
bogdanovich [222]3 years ago
6 0

Answer:

From a buyer's perspective, a sale made on credit represents a liability. While a sale made on cash represents a decrease of current assets.

From a seller's perspective, a sale made on credit or cash increases current assets, but the possibility of a bad debt always exist, therefore, accounts receivables must be periodically adjusted due to bad debts.

If the seller or buyer uses accrual accounting system, the previous description holds, but if they use cash basis accounting, things change a lot. When use cash basis, transactions are recorded only when cash is exchanged, so accounts receivables do not actually increase assets (seller's perspective), and accounts payables do not increase liabilities (buyer's perspective).

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Georgia [21]

"It improves organization fit because current employees understand the company's culture" is an advantage of internal recruitment.

<u>Option: C</u>

<u>Explanation:</u>

Recruitment are of basically two types on the basis of staff location like internal and external. Each firm is more comfortable to recruit departmental candidate because the current staff is well aware about the firm atmosphere.

This helps to save time of training to them, better fluency in work, trust factors, etc. Although external recruitment is also need to invite fresh talent with more energy and enthusiasm towards work profile, thus to train them and bring on specific track, training and meetings are needed to held.

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4 years ago
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Katarina [22]

This is an example of outsourcing, which is when domestic jobs are sent to countries overseas to take advantage of the lower costs.

6 0
4 years ago
Which of the following descriptions pertains to a "Cognitive" style of decision-making? Review Later Decisions derived from the
Orlov [11]

Answer:

An integrated feedback system between the individual/organization making a decision, and the broader environment’s reactions to those decisions. This type of decision-making process involves iterative cycles and constant assessment of the reactions and impacts of the decision.

Explanation:

As the name implies, cognition requires the use of the senses to acquire information and process that information so as to enable better decision making. Individuals and organizations make use of the cognitive style of decision-making when they obtain information and process them to see how they affect others. The effects of the decisions should be properly observed and analyzed.

The method follows a circle. So, when one aim is reached, the decision-maker can evaluate whether it is satisfactory or whether more efforts should be made.

6 0
4 years ago
Foxmoor Company applies manufacturing overhead by using a predetermined rate of 50% of direct labor cost. The data that follow p
Aleks [24]

Answer:

e. Choice E

Explanation:

Total cost of job no. 764 = $55,000 + $80,000  + 80,000 x 50%

                                         = $175,000

Total Revenue for job no. 764 = $175,000 + $175,000 x 40%

                                                  = $245,000

E. Sales Revenue $245,000

4 0
3 years ago
During which stage of the business buying decision process is a buyer most likely to conduct value analysis by carefully studyin
Alik [6]

Answer: product specification stage

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Product specs translate that vague feedback into quantifiable, tangible data.

Essentially, it is a set of instructions on exactly what the product should be and should do.

3 0
4 years ago
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