Factoring" occurs when a business sells some of its accounts receivable to another insitution so it can receive cash immediately instead of having to wait until the receivables can be collected. True or False
Q: 0/quizzes/137563/take Advances to supplier: 600,000 currently collectible: 300,000 Advances to…
A: Current liabilities are those liabilities and obligations which needs to be paid or settled within…
Q: In 2022, Ava, an employee, who files single, has AGE of $26,600 and incurred the following…
A: The question lists down the expenses incurred by Ava and seeks answers on what would be itemized…
Q: g industry in general, how do you assess the working capital requirement for a hospital? High…
A: Working capital is very important for business and for smooth movement of business but it depends on…
Q: 8. What is the project's simple rate of return for each of the five years? (Round your answer to 2…
A: The net present value applies to a series of cash flows occuring at different times.The net present…
Q: Perfect Picture Inc. (PPI) experienced the following transactions during Year 2. The transactions…
A:
Q: When the effective-interest method is used to amortize notes premium or discount, the periodic…
A: Introduction: Amortization is the process of reducing the book value of intangible assets over a…
Q: What are the allocated wages for Jack and Jill in Year 1 and Year 2 and how do you calculate this?
A: Ordinary income (OI) which is the term of accounting and it states the amount of money that is…
Q: Prepare journal entries to record the following merchandising transactions of Cabela’s, which uses…
A: Journal entry is the act of keeping records of any transaction either economic or non economic.…
Q: Assume that a company pays a 5% sales commission. Also, assume (1) a company's plantwide…
A: Lets understand the basics. Total cost of job is a total of all costs that are incurred to complete…
Q: What is the special function that auditors perform? Whom doesthe external auditing profession serve…
A: Auditing: It is an independent assessment of an organization's financial information to determine…
Q: erates a number of coffee stands in busy suburban malls. The fixed weekly expense of a coffee stand…
A:
Q: Problem 12-25 (Algo) Net Present Value Analysis of a Lease or Buy Decision [LO12-2] The Riteway Ad…
A: Net present value: present value of all cash inflows Less: present value of cash outflows The option…
Q: FunTime Company produces three lines of greeting cards: scented, musical, and regular.Segmented…
A: Income Statement The income statement is defined as the financial statement that explains the…
Q: A table of notes receivable for 2024 follows: (Click the icon to view the table of notes receivable…
A: Note means an instrument acknowledging as debt due from one party to another party. Formula to be…
Q: Compute Payroll Floatin Away Company has three employees-a consultant, a computer programmer, and an…
A: Gross pay of the employees means regular earnings made by the employee and all overtime earnings…
Q: 1. What is the corrected cost of goods sold for 2020? 2. Did the understatement of ending inventory…
A: Inventory understatement means that the amount of inventory being reported less than the correct…
Q: A credit term of 3/10 net 60 means Discount of 0.3% if paid immediately else payment is effected…
A: Introduction:- Credit terms is an agreement between the buyer and seller pertaining to the timings…
Q: Gomez Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal,…
A: Purchase Journal :— It is book of prime entry. Transaction related to purchase on credit is…
Q: Jamieson Ltd is preparing to set up business on 1/7/2022 and has made the following forecast for the…
A: Budgeting - Budgeting is the process of estimating future operations based on past performance. %…
Q: eBook Show Me How Cost Flow Methods. The following three identical units of Item LO3V are purchased…
A: Gross Profit :— It is calculated by subtracting sales from cost of goods sold. Ending Inventory…
Q: Fool Proof Kitchens manufacturers custom made self-cleaning professional grade food processors. The…
A: The product costs comprises of direct and indirect costs. The direct costs are direct materials and…
Q: Less: Retiree benefits End of 2021 Less: Retiree benefits (40) $653 End of 2021 (40) $ 498 Required:…
A: Defined Benefit Obligation Defined benefit obligation which is considered to be one of the oldest…
Q: On January 1, Wei company begins the accounting period with a $46,000 credit balance in Allowance…
A: Allowance for Doubtful Account :— It is a contra assets account which reduces the account receivable…
Q: Required information P8-2 (Algo) Analyzing the Effects of Repairs, an Addition, and Depreciation…
A: Req 1 Building Accumulated Depreciation Depreciation Expense Repairs Exp Cash Balance Jan 1…
Q: Oahu Kiki tracks the number of units purchased and sold throughout each accounting period but…
A: Inventory valuation is based on the flow-off issue used by the organization. It can be the first in…
Q: What does the full disclosure principle require? O Companies must disclose transactions as part of…
A: The full disclosure principle states that:- financial statements should disclose all events and…
Q: For all payroll calculations, use the following tax rates and round amounts to the nearest cent:…
A: 1) Computation of gross pay for working of 58 hours during the first week of February :- Gross pay =…
Q: ote payable to the Bank of the Giniling Islands for P2,400,000 is outstanding on December 31, 2022.…
A: Note Payable : It is a written document where the borrower is promise to pay the amount of debt to…
Q: Himalayan Engineering Works currently takes four days to convert the raw material and components to…
A: The operating cycle shows how much time passes between a cash outflow and a cash inflow.…
Q: Which of the following is the principal reason for preparing managerial accounting reports? a.GAAP…
A: Introduction: Managerial accounting reports are used for planning, regulation, decision making, and…
Q: Hamilton Company uses a periodic inventory system. At the end of the annual accounting period,…
A: Inventory is one of the important current asset of the business. There are several methods used for…
Q: Discuss Principle-Agent Problem and Give an example in the business world
A: Principal-Agent relationship is one where one party (Principal) gives another party (Agent)…
Q: Paula Boothe, president of the Ayayai Corporation, has mandated a minimum 8% return on investment…
A: Economic value added Net operating income after tax - (capital employed * weighted average cost of…
Q: Ali Co. uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and…
A: The process of recording business transactions in the books of accounts for the first time is…
Q: On January 1, Vienna Corporation purchased 40% of the outstanding common stock of the Marietta…
A: Investment means the amount of money invested by an entity in a company, its securities such as…
Q: Direct Labor Cost Budget Ace Racket Company manufactures two types of tennis rackets, the Junior and…
A: Budgeting is the process of estimating future cost that is to be incurred during a specific period…
Q: TB MC Qu. 12-77 (Algo) Antique Corporation is contemplating the ... Antique Corporation is…
A: Given, Original cost of this asset = $34,000, Depreciation expense = $26,000, Current estimated…
Q: The concept that market forces in the macroeconomy can remedy a recession is referred to as:…
A: Monetary Policy- Monetary policy refers to the actions and communications of the central bank in…
Q: Colwood Candies issued $370,000 of 12%, five-year bonds on January 1, 2020, when the market interest…
A: Amortization schedule is the one which is prepared to record the interest incurred during a period,…
Q: (a) The amount of interest charged on May 31 is $. (Round the final answer to the nearest cent as…
A: Given in the question: The limit of line of credit = $44,000 Each Months Principal’s payment at the…
Q: Assume other things held constant, how much is the total asset at the end of 2019?
A: Accounting is based on dual aspect as there is equal debit for every credit and vice-versa. When a…
Q: Required information [The following information applies to the questions displayed below.] The…
A: Balance Sheet is a financial statement that records all the assets, liabilities and stockholders…
Q: The percentage of accounts receivable that is uncollectible can be ignored for cashbudgeting…
A: Budgets are the forecasts or estimates that are made for future period. Cash budget is one of the…
Q: segmented income statement
A: Segmented income statements refer to the statements that provide the additional details of the…
Q: en has a $68,000 basis in her 50 percent partnership interest in the KD Partnershi tribution of…
A: Partnership : It is the relationship of more than two person who carried on business with profit…
Q: ncome 250,000 $ dian active business income 50,000 $ ble capital gain
A: Tax : It is the amount which is levied by the country/state on the pay income of the individual and…
Q: Which of the following is most associated with financial accounting reports? a.can be prepared for…
A: Introduction: The publishing of an organization's financial performance to its stakeholders and the…
Q: Blended Company uses the allowance method to account for uncollectible receivables. At the beginning…
A: Allowance method is the method of maintaining a reserve separately for the uncollectible or bad debt…
Q: Explain why depreciation on an existing asset is always irrelevant.
A: Fixed assets are those assets which are being held by the business for longer period of time. For…
Q: What is the objective of external auditing? Describe the role ofexternal auditing in meeting demands…
A: Introduction: An external audit is a review undertaken by an outside accountant. This form of audit…
Step by step
Solved in 2 steps
- Which of the following is not normally increased by a cash inflow transaction? a) Advances from Customers b.) Unearned Revenue from Customer Loyalty Program c.)Unearned Revenue from Warranty Contracts d.)Deposits on Returnable ContainersCompanies sometimes convert receivables to cash before they are due by selling them or using them as security for a loan. The reasons that a company may convert receivables before their due date include: (Check all that apply.) to quickly increase profit. the company needs cash. the company does not want to deal with collecting receivables. to satisfy customer's needs.When a business factors its accounts receivables, the business no longer has to deal with the collection of the receivables from the customers receives cash, less an applicable fee, after the factor collects from the customers uses the receivables as security for a loan receives the total amount of the receivables from the factor
- What is the main purpose of accounts receivable in factoring? a. To meet immediate cash needs of the business b. To create an additional guarantee of collection c. To invest accounts receivable in another business d. To establish a legal proof for future useWhy should a company have clear strategy for collecting Accounts receivable from its customers? For example, some companies do offer discounts to customer for early payment instead collecting the full amount at the due date."In accounts receivable management, credit analysis is the process of determining the probability that customers will not pay."
- The main purpose of factoring accounts receivable is a. To invest accounts receivable in another business b. To meet immediate cash needs c. To create an additional guarantee of collection d. To establish a legal proof for future useWhat is the main purpose of factoring in accounts receivables? a. To meet immediate cash needs of the business b. To create an additional guarantee of collection c. To invest accounts receivable in another business d. To establish a legal proof for future useWhen a business endorses a note and transfers it to a bank, the process is called a discounting a note receivable. b. dishonoring a note receivable e cosigning a note receivable d. collecting a note receivable
- if you issued a cheque to the customer who supplied you goods for sale and the bank manager declines to cash it, what justification would you accept for his decision?With respect to disbursements, a company can manage their cash more efficiently by __________. a.) paying with cash b.) using lockbox banking c.) minimizing float time d. making use of credit1. Which of the following is the primary reason why a company sells it receivables to another entity? a) to improve the quality of its credit granting process b) to comply with customer agreements c) to limit its legal ability d) to accelerate access to amount collected
