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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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The crowding-out effect implies that restrictive fiscal policy will increase aggregate demand and employment. lead to a signific
vladimir1956 [14]

The crowding-out effect implies that restrictive fiscal policy will reduce real interest rates.

<u>Option: D</u>

<u>Explanation:</u>

The crowding out effect is the circumstances where greater interest rates consequences gives output of a decline in private investment expenditure so as to dampen the initial rise in overall investment expenditure. Authorities often embraces a restrictive fiscal-policy approach and raises spending to stimulate economic activity. This contributes to interest-rate rises. Higher interest rates have a impact on private investment choices. A high magnitude of the crowding-out impact can also result in lower economic revenue.

4 0
3 years ago
Which of the following would not be characteristic of a chain restaurant?
mr_godi [17]

Answer:

C: ability to set your own hours of operation

Explanation:

With a chain restaurant you have to have the same hours as other restaurants in that chain.

7 0
3 years ago
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For a natural monopoly to exist
vfiekz [6]

Answer:

The correct answer is A

Explanation:

Natural monopoly is the kind of monopoly which exists because of the high start up costs as well as the powerful economies of scale for conducting or performing a business in a particular industry.

And for this type of monopoly to exist , a firm or business need that the long run average cost curve will exhibit the economies of scale by the relevant range of the market demand.

3 0
3 years ago
A new machine requires an investment of $630,000 and will generate $100,000 in cash inflows for 7 years, at which time the salva
Orlov [11]

Answer:

$-76,447.56

Explanation:

Net present value is the present value of after-tax cash flows from an investment less the amount invested.  

NPV can be calculated using a financial calculator  

Cash flow in Y0 = -630,000

Cash flow in Y1 - Y6 = 100,000

Cash flow in Y7 = 100,000 + 130,000

I = 10%

npv = $-76,447.56

To find the NPV using a financial calculator:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. after inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.  

3. Press compute  

4 0
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An investor from United Arab Emirates wants to establish a University of Science and Technology in Uganda.
prisoha [69]

Answer:

Make a canteen

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to eat when hungry

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