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gayaneshka [121]
2 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]2 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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Suppose a monopolist produces two different products. If the marginal cost of producing one is lower than the marginal cost of p
soldier1979 [14.2K]

Answer:

perfectly price discriminating.

Explanation:

here are the options to this question :

not maximizing its profit.

imperfectly price discriminating.

not price discriminating.

perfectly price discriminating.

perfect price discrimination also known as first-degree discrimination is when a seller sells his product at the maximum possible price for each unit consumed. Due to the price variance, the seller captures all available consumer surplus.

A monopoly is when there is only one firm operating in an industry.

4 0
3 years ago
Adirondak Marketing Inc. manufactures two products, A and B. Presently, the company uses a single plantwide factory overhead rat
tamaranim1 [39]

Answer:

Predetermined manufacturing overhead rate= $14.77 per direct labor hour

Explanation:

Giving the following information:

Estimated overhead cost for the period= $325,000

Estimated total direct labor hours for the period= 22,000

<u>To calculate the predetermined manufacturing overhead rate we need to use the following formula:</u>

Predetermined manufacturing overhead rate= total estimated overhead costs for the period/ total amount of allocation base

Predetermined manufacturing overhead rate= 325,000 / 22,000

Predetermined manufacturing overhead rate= $14.77 per direct labor hour

8 0
3 years ago
If a currency such as the​ US$ is traded in a competitive​ market, a(n)​ ________ in demand for the​ US$ ________ the price of t
Lerok [7]

Answer:

If a currency such as the​ US$ is traded in a competitive​ market, a(n)​ increase in demand for the​ US$ raises the price of the​ US$ in terms of another currency such as the Japanese Yen ​(yen​).

Explanation:

Basic offer and demand law.

5 0
3 years ago
Which of the following government actions would increase the supply of cars in the United States?a. the establishment of an exci
yaroslaw [1]
I think it would be the third option
5 0
3 years ago
At December 31, Riverbed Corporation reports net income of $454,000. Prepare the entry to close net income. (Credit account titl
Tpy6a [65]

Answer:

Dr Profit and loss account $454,000

Cr Retained earnings $454,000

Explanation:

Preparation of the Journal entry to close net income for Riverbed Corporation

Based on the information given we were told that the Corporation reports net income of the amount of $454,000 on December 31 this means the Journal entry to close the account will be recorded as:

Dr Profit and loss account $454,000

Cr Retained earnings $454,000

3 0
3 years ago
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