n Ramadan month and in Christmas, consumers increase their preferences for cash versus demand deposits. Explain the effect this has on 1- Primary deposits 2- Derivative deposits 3- Credit multiplier 4- Money multiplier 5- Monetary base 6- The money supply

n Ramadan month and in Christmas, consumers increase their preferences for cash versus demand deposits. Explain the effect this has on 1- Primary deposits 2- Derivative deposits 3- Credit multiplier 4- Money multiplier 5- Monetary base 6- The money supply

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter10: Accounting For Sales And Cash Receipts

Section: Chapter Questions

Problem 5TF

See similar textbooks

Related questions

Q: C) Receivables and Cash: Understanding Collection Float Your seven friends often go to you when they…

A: 11. On Mondays, the friends who owe me the money are Fred, George and Anna. Each of them owes me…

Q: Borrowing of reserve fund by Bank means a. To meet the customers need for business loans b.…

A: A reserve fund is a special account with a financial institution such as a bank

Q: Calculate the following: a. Determine the cash receipts for April based on the following data: Cash…

A: Cash account balances and account receivable balances are identified in cash budgets. The cash…

Q: (Learning Objective 1: Show how to speed up cash from receivables) Patterson ShirtCompany sells on…

A: Cash plays a vital role in the company's day to day operations, there should be enough cash…

Q: 38) Solo traders has the following transactions for the month of January 2019. 9- Goods purchased…

A: CASH:- Cash is considered as the most liquid asset that a particular company can buy. Cash can be…

Q: What does the Accounts Receivable Turnover measure? Group of answer choices a)The net realizable…

A: The accounts receivable turnover ratio is one metric to watch closely as it measures how effectively…

Q: 3. The bank column in the cash book for Mac 2020 and the bank statement for that month for Keris…

A: Bank reconciliation statement is prepared where an entry which is found in one book (Cash book or…

Q: May I ask for an explanation and solution to the question for a better understanding. Thank you!…

A: Opening Accounts Receivable = 25,000 Closing Accounts Receivable = 15,000 Average Accounts…

Q: Zebra Imaginarium, a retail business, had the following cash receipts during December 20--. The…

A: The restructure:

Q: Write up a three-column Cash Book for Kevin Davis for the month of 2020 August from the following…

A: Three column cash books show the separate balance of cash, bank, and discount amount. It helps the…

Q: 2. The bank column in the cash book for June 2020 and the bank statement for that month for Haris…

A: Following are the updated cash book and bank reconciliation

Q: Calculate the cash discount and the net amount due the transaction (in $). (Round your answers to…

A: Introduction Cash discount is the discount given by the seller of goods to the buyer of goods . The…

Q: Jul 2 Recommended to the owner, Jen Beck, that she put some of the cash into a Money Market…

A: QuickBooks is an accounting software package which has various tools like accounting, inventory,…

Q: On April 3rd, Snappy Sales decides to establish a $135.00 Petty Cash Account to relieve the burden…

A: Please find the answers to the above questions below:

Q: If a business collects cash when the gift card is sold, how can gift card sales in December result…

A: Gift cards are mostly sold by a retailer to a buyer for cash. The buyer can then redeem the gift…

Q: E9-4 (Algo) Recording a Note Payable through Its Time to Maturity with Discussion of Management…

A: Introduction: A journal entry is a record of a business deal in the accounting system of an…

Q: c) During the Christmas season, the public wants to hold more currency to buy gifts and so withdraws…

A: Answer: The Answer is - Banking System Explanation - As people withdraw money, the deposits with…

Q: Assume that the custodian of a $465 petty cash fund has $67.50 in coins and currency plus $391.50 in…

A: The petty cash balance is maintained for day to day cash transactions of the business.

Q: bank discount and proceeds for these notes. Assume that the notes were discounted on June 10 at a…

A: Notes are issued by the banks on discount and the customer have to pay the face value on the…

Q: the cash receipts journal. Total and rule the sales journal. Ignore sales taxes. Use the journal…

A: T account: T account is a T-shaped appearance of the journal entries related to a specific account…

Q: Examine how jasmine and rosemary should show the sale and fees in the sales budget, the operating…

A: In the bank account of Jasmine and Rosemary, gross amount of amount collected shall be credited and…

Q: Receivables and Cash: Understanding Collection Float Your seven friends often go to you when they…

A: As per the guidelines, only the first three sub-parts will be answered. Kindly resubmit the question…

Q: Prepare the SCI for Merchandizing Business All currency is in Philippine Pesos Maitum School…

A: The income statement is prepared to find the net income or loss incurred during the period.

Q: 3. The bank column in the cash book for Mac 2020 and the bank statement for that month for Keris…

A: In case of any mismatch of balance of cash book and pass book, we prepare the Reconciliation…

Q: The College Store accepts MasterCard for payments of purchases made by students. The credit card…

A: Service charge expense = Amount deposited x MasterCard charges = $10,000 x 1.55% = $155

Q: Block, S., Hirt, G., & Danielsen, B. (2017). Foundations of Financial Management. New York, NY:…

A: Part (A)City Farm has $5 million per day in collections and $3 million per day in…

Q: 10) olo traders has the following transactions for the month of February 2019. 9- Goods purchased…

A: Three column cash book means the book which include detail regarding cash , bank and discount…

Q: The following pertain to French Quarter Gifts & T-Shirts, Inc. March 31, 2020 Cash Balance Per…

A: While preparing a Bank Reconciliation, adjustments are made to Cash balance as per bank statement to…

Q: 1) While looking through the invoices, you found Invoices 23-57, 60-95, and 99-110. It appears that…

A: Introduction: An invoice is a document sent by a seller to a customer in order to collect payment.…

Q: A Moving to another question will save this response. Question 9 Moon Co. decides to establish a…

A: Cash short and over account is expenses account. If ending balance of petty cash book is different…

Q: Credit Card Sales Ruth Anne's Fabrics accepts cash, personal checks, and two credit cards when…

A: A journal entry is a form of accounting entry that is used to report a business transaction in a…

Q: It is the list of all invoices sent out to Customers each day by your business a. Cash receipt…

A: Cash receipt Journal shows all the transactions which involves receipt of cash, in other words it…

Q: Account Credit (P) Interest Expense Sales Return and Allowances Administrative Expenses Sales…

A: Income statement Particulars Amount Revenue Sales 719450 Less:Sales…

Q: 9/The business has the following transactions for the month of May 2019. 9- Sold goods and received…

A: Cash Sales are those that are collected at the time of sale. If collected later, those sales would…

Q: Assume that the custodian of a $500 petty cash fund has $62 in currency plus $412 in receipts at the…

A: Petty cash fund: Petty cash fund is a fund established to pay insignificant amounts like postage,…

Q: Discuss Followings: (a) Discuss a total of four (4) factors that are relevant in determining how…

A: Hi, since you have posted multiple questions. I will answer the first one as per the guidelines.…

Q: 3. The bank column in the cash book for Mac 2020 and the bank statement for that month for Keris…

A: a) Below is the Updated Cashbook: Cash Book (Bank Account Only) Date Particulars Amount (RM) Date…

Q: During the Christmas season, the public wants to hold more currency to buy gifts and so, withdraws…

A: Answer: (2) Banking System

Q: Which of the following accounts will get affected when cash is received from sale made on account in…

A: DATE ACCOUNTS DEBIT CREDIT Accounts Receivable xxxx Service Revenue xxxx (To…

Q: the month of sale, 55% in the first month after sale, 22% in the second month after sale, and 3% is…

A: Introduction: The cash collection cycle is the number of days it takes to recover accounts…

Q: 1. The cash receipts journal of Malaya Merchandising refie for the month of April 2019. Amount…

A: "Since you have asked multiple questions, we will solve first question for you. If you want any…

Q: InvisiGuard Ltd sells security doors. Majority of its sales are on credit except small amount of…

A: Allowance for doubtful debt is the estimate of how much of trade receivable balance as on date will…

Q: 2. The bank column in the cash book for June 2020 and the bank statement for that month for Haris…

A: a. Updated Cashbook: Date Particulars Dr (RM) Cr (RM) Balance (RM) June 1 2020 Balance b/d…

Q: cash

A: Cash discounts: Cash discounts refer to deductions from the original amount offered by the sellers…

Q: Sales to customers who use bank credit cards such as MasterCard and Visa are usually recorded by…

A: From the perspective of Mastercard and visa services if we see then, the customer has to ultimately…

Q: Marty selected Money Bank because of the features described below. Marty plans on using network ATMS…

A: Network ATM usage charges ATM usage per month = 8 times First 2 times = Nil Next 6 times= 6 x $4=…

Concept explainers

Loanable Funds Theory

The loanable funds theory is a neoclassical theory that determines the interest rate where the demand for loanable investments and supply of loanable funds intersect. To determine the interest rate, this theory employs linear regression and a demand curve. At the equilibrium point, demand for borrowings and demand for the issuance of borrowing funds are inextricably linked. This point of equilibrium should equalize demand and the supply of money available for borrowing.

Question

100%

In Ramadan month and in Christmas, consumers increase their preferences for cash versus demand deposits. Explain the effect this has on 1- Primary deposits 2- Derivative deposits 3- Credit multiplier 4- Money multiplier 5- Monetary base 6- The money supply

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2

VIEW

Step by step

Solved in 2 steps with 2 images

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions

As a company accounts payable manager, which of the following credit terms are most likely to entice you to take the cash discount? A. 2/10 net 90 B. 1/10 net 45 C. 2/10 net 60 D. 1/10 net 30
In a survey on consumer spending methods, the following results were obtained. Payment Method Checks Cash Credit cards Transactions, % 37 14 20 If a transaction tracked in this survey is selected at random, what is the probability that the transaction was paid for by each of the following? (a) with a credit card or with a debit/ATM card Debit/ATM Need Help? (b) with cash or some method other than with a check, a credit card, or a debit/ATM card Read It cards Other 19 10
Multiple choice: 1. The measure of how quickly an item can be converted into cash is referred to as A. Leverage B. Solvency C. Liquidity D. Profitablity 2. A customer bought goods from your business, on credit. The customer orally promised to pay the sale price next week. Which of the following accounts is increased and therefore debited? A. Cash B. Accounts Receivable C. Notes Receivable D. Sales
Sales to customers who use bank credit cards such as MasterCard and Visa are usually recorded by a(n) _____. a.increase in Cash, increase in Credit Card Expense, and increase in Sales b.increase in Cash, decrease in Credit Card Expense, and increase in Sales c.decrease in Sales, increase in Credit Card Expense, and decrease in Cash d.decrease in Bank Credit Card Sales, increase in Credit Card Expense, and increase in Sales
Banks improves the liquidity of the bank by a. Purchasing more assets of the bank b. Increasing the profit rates on saving accounts c. Generating additional income from investment d. By reducing the interest rates on loan
which of the following source of finance allows the holders to withdraw more than their balance ? a. Commercial Paper b. Bank Overdraft c. Credit card d. cash credit
Determine the following (1-3): 1. What is the expected cash collection in December? 2. What is the cost of the December merchandise purchases? 3. What is the December cash disbursements for merchandise purchases?
Analyze: What were the total cash receipts during March? can you help me how to do it, please?
Indicate the impact of the following on CASH and OPERATING Cycles, respectively. Use letter (I) to indicate an increase, the letter (D) for a decrease, or the letter (N) for no change. ___;___ a) The cash discounts offered by suppliers are increased: thus, payments are made earlier. ___;___ b) An increasing number of customers begin to py in cash instead of with credit. ___;___ c) Fewer raw materials than usual are purchased. ___;___ d) A greater percentage of raw material purchases are paid for with credit. ___;___ e) More finished goods are produced for inventory instead for order.
Borrowing of reserve fund by Bank means a. To meet the customers need for business loans b. Overnight borrowing by banks to provide customers short term loans c. Borrowing by banks to meet unexpected rise in customers withdrawal d. Overnight borrowing by banks to meet customers deposit
Q1-1 What risks are present if you take too long to col- lect our accounts receivable? Q1-2. What are some analyses you could perform that would provide insight into how efficiently your company is collecting cash from customers? Are there any KPIS that would be appropriate here? Q1-3. In your opinion, what would be an appropriate benchmark for the average number of days sales outstanding (i.e., Accounts receivable/Sales x 365)? Would management want this number higher or lower?
Hi, I want to ask about the Cash Over and Short Account. Why and how does this account exist? Where can the surpluses or shortages coming from?