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3 years ago

Unlike consumer credit, trade credit does not involve the use of a

Business

1 answer:

hammer [34]3 years ago

3 0

Answer:

Trade credit means many things but the simplest definition is an arrangement to buy goods and/or services on account without making immediate cash or check payments. Trade credit is a helpful tool for growing businesses, when favorable terms are agreed with a business's supplier.

Explanation:

Trade credit allows businesses to receive goods or services in exchange for a promise to pay the supplier within a set amount of time. New businesses often have trouble securing financing from traditional lenders; buying inventory, for example, on trade credit helps increase their purchasing power.

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Aloan Co. provides the following sales forecast for the next three months: January February March Sales units 3,000 4,200 5,000

Natalka [10]

Answer:

Total= 3,120 units

Explanation:

Giving the following information:

production budget:

January= 3,000 units

February= 4,200 units

March= 5,000 units

The company wants to end each month with ending finished goods inventory equal to 10% of the next month’s sales.

Beginning inventory= 300 units.

To calculate the production for any month, we need to use the following formula:

Production= sales + desired ending inventory - beginning inventory

<u>January:</u>

Sales= 3,000

Desired ending inventory= (4,200*0.1)= 420

Beginning inventory= (300)

Total= 3,120 units

6 0

3 years ago

Customers should not expect a company to keep their information confidential true or false

Julli [10]

The answer would be false.

5 0

1 year ago

When might the exchange rate affect you most directly?

Tanzania [10]

Answer: answer d seem more likly because you have then traveld to another country

Explanation:

8 0

3 years ago

True or False. Expense for a quality-assurance warranty is recorded along with the related liability in the reporting period in

Novosadov [1.4K]

Answer:

True

Explanation:

Whenever a company sells products that may generate warranty expenses, it must estimate the warranty expenses associated with the products sold.

It must credit a warrant liability account, and as the warrant claims are made, the company must debit a warranty expense account.

5 0

3 years ago

Assume that the full-employment level of output is $2,000 and the price level associated with full-employment output is 100. Als

olya-2409 [2.1K]

Answer:

The correct answer is option a.

Explanation:

The full-employment level of output is $2,000.

The current level of output is $1,900.

The current aggregate demand is $1,850.

There is a need to increase the aggregate demand by $150 to reach full employment level.

The government increases purchasing by $30.

$Increase\ in\ income\ =\ Change\ in\ government\ spending\ \times\ spending\ multiplier$

$\$ 150\ =\ \$ 30\ \times\ \frac{1}{1-MPC}$

$\$5 = \frac{1}{1-MPC}$

1 - MPC = $\frac{1}{5}$

MPC = 1 - 0.2

MPC = 0.8

6 0

4 years ago