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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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Based on the information given, it can be deduced that the method of overcoming resistance that's illustrated is known as D. Force-field analysis.

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It should be noted that force-field analysis can either drive the movement towards a goal or block the goal. It's a method for overcoming resistance to organizational change.

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B. Cable Television

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UESTION 7 You hold a portfolio consisting of a $5,000 investment in each of 20 different stocks. The portfolio beta is equal to
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Portfolio   #   Beta   NEW Beta  

$ 5.000          1  1,00   2,00  

$ 5.000         2  1,12   1,12  

$ 5.000         3  1,12   1,12  

$ 5.000         4  1,12   1,12  

$ 5.000         5  1,12   1,12  

$ 5.000         6  1,12   1,12  

$ 5.000         7  1,12   1,12  

$ 5.000         8  1,12   1,12  

$ 5.000         9  1,12   1,12  

$ 5.000        10  1,12   1,12  

$ 5.000        11  1,12   1,12  

$ 5.000        12  1,12   1,12  

$ 5.000        13  1,12   1,12  

$ 5.000        14  1,12   1,12  

$ 5.000        15  1,12   1,12  

$ 5.000        16  1,12   1,12  

$ 5.000        17  1,12   1,12  

$ 5.000        18  1,12   1,12  

$ 5.000        19  1,12   1,12  

$ 5.000        20  1,24   1,24  

$ 100.000           1,12   1,17  

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