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

4. PROBLEM 3-6 In-Transit Items LO 8 On July 31, 2019, Ping Company purchased 90% of Santos Company's common stock for $2,010,000 cash. Immediately after the acquisition, the two companies' balance sheets were as follows: Ping $ 320,000 S 150,000 Santos Cash Accounts receivable 600,000 300,000 Note receivable 100,000 -0- Inventory 1,840,000 400,000 Advance to Santos Company Investment in Santos Company 2,010,000 60,000 -0- -0- Plant and equipment (net) 3,000,000 1,500,000 Land 90.000 90,000 Total $8,020,000 $2,440,000 $ 800,000 S 140,000 100,000 Accounts payable Notes payable Common stock 900,000 2,400,000 900,000 680,000 620,000 $8,020,000 $2,440,000 Other contributed capital 2,200,000 Retained earnings 1,720,000 Total Santos Company has not yet recorded the $60,000 cash advance from Ping Company. Ping Company's accounts receivable include $20,000 due from Santos Company Santos Company's $100,000 note payable is payable to Ping Company Neither company has recorded $7,000 of interest…

Discounting is a transfer or endorsement of a promissory note by the payee in favor of another party usually a bank where the payee becomes the endorsee TRUE OR FALSE

Advantages and disadvantages of accepting debit and credit card transactions as opposed to accepting personal Cheques from customers? (Consider both internal control and business reasons)

Which of the following transactions leaves a bank's total asset and liability unchanged? A bank receives deposits from a customer in the form of cash. O A bank writes off a bad loan it made to a local business. O A bank pays out cash to a customer who wants to withdraw money from his checking account. A bank makes a consumer loan with its cash reserves.

At the time companies write off accounts receivable, there is no effect on net income. true or false

3.-The objective of accounts receivable management is to collect receivables as soon as possible without losing sales by applying high-pressure collection techniques. True or false?

What is the primary reason why most businesses want to sell on a credit basis if it is preferable for sellers to collect advance payments from customers and/or accept cash transactions only? Give and explain a credit/collection-related task of (a) credit manager and (b) collections manager.

Trade receivables include employee advances. occur when two companies trade or exchange notes receivables. can be accounts receivable or notes receivable. do not result from the operations of the business.

Which of the following is/are a sign that a company can quickly turn its receivables into cash (may have more than one answer)? Check All That Apply a)A high average collection period. b)A low average collection period. c)A low receivables turnover ratio. d)A high receivables turnover ratio.