Net working capital increases when:  A. a credit customer pays for his or her purchase B. inventory is sold at cost. C. fixed assets are purchased for cash D. inventory is purchased on credit

Q: (f) Bought goods on credit $2200

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A: Realization means the amount that has been received from sale of the assets of the company due to…

Q: An expense transaction is posted to accounts payable and is assigned to a vendor. In which account…

A: Step 1Understand the nature of the transaction. The transaction is an expense posted to accounts…

Q: Accounting can help finance by: Timely delivery of appropriate accounting information Keeping the…

A: Accounting is the process of recording the transaction in books, basis which financial data is…

Q: is A written promise to pay the supplies an asset capital so on? is Fax Machine an asset capital so…

A: The answer is stated below:             Note: Answering the first three subparts as there are…

Q: Which of the following transactions is a financing activity? Select one: a. Cash paid for purchase…

A: Statement of cash flows: It is a financial statement that shows the increase or decrease in the cash…

Q: Case X: Case Y: Case Z: Compute cash received from customers Sales Case X: Case Y: Case Z: Accounts…

A: The cost of goods sold means the price that is incurred in the production of goods. It is the sum of…

Q: Purchase of furniture is a cash outflow from activity in a cash flow statement. A. operating B.…

A: INTRODUCTION: A cash flow statement shows how much money enters and leaves your organization in a…

Q: Identifying capital and revenue nature receipts and expenses from following information: Salary…

A: Revenue nature expenses are those expenses, which are incurred for daily operations. Capital nature…

Q: What is the ultimate objective of financial management?   Question 7 options:     to ensure the…

A: Financial management is the process of planning, organizing, controlling, and monitoring the…

Q: When a firm's accounts payable goes down, this is the result of .....of funds for the firm. O A.…

A: Solution: Accounts payable represents liabilities of a firm. It includes short term loans, sundry…

Q: During the current year, Giatras Electronics recorded credit sales of $710,000. Based on prior…

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

Q: whether the statement is true or false.

A: Asset-based financing is the finance availed by a company in lieu of its assets. In such cases, the…

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A:

Q: Give one word or a term used to describe the following:  a) An allowance by a creditor to debtor for…

A: Answer:-  Creditor meaning:- A creditor is a person or organization that offers another party credit…

Q: The factor payment for the use of financial capital (loans and equity investments) is called...…

A: The cost of finance: Equity and debt are two sources of capital for any business.  Investors who…

Q: The higher the accounts receivable, the higher the capital requirement needed by the company to…

A: Accounts receivable is the current assets of a firm which reflects the amount owed to customers for…

Q: Expalin the meaning of the following terms by providing examples in each case: 1.1. Time value of…

A: Solution (1.1)- Time value of money- The duration of cash is that the idea that cash you've got now…

Q: 4. _______ is the act of paying out includes money paid out to run a business, cash expenditure and…

A: Disbursement – it means paying out. It can be used to describe money paid into running a business…

Q: tell whether the assets, liabilities and equity will increase (I), decrease (D) or is not affected…

A: The accounting equation is considered to be the foundation of the double entry accounting system. On…

Q: Accounting equation: equipment purchased on credit from macro will result in an: 1. Increase in…

A:

Q: Which function of money allows individuals to make payment now in return for goods and services? A.…

A: Medium of exchange : Money serves as a medium of exchange. Money facilitates exchange of goods…

Q: What does a firm need to do to improve liquidity? O A. Stock up on inventory in order to never run…

A: Liquidity situation of the business means ability of the business to pay short term obligations from…

Q: Banks improves the liquidity of the bank by

A: The correct answer is c. Generating additional income from investment

Q: What causes the decrease in Assets? A. Cash Purchases B. Liabilities C. Payment of Expenses D.…

A: The balance sheet represents the financial position of the business with assets, liabilities and…

Q: Which of the following activity will NOT show up on cash flow from operating activities? O Purchase…

A: Cash flow statement records the inflow and outflow of cash. Cash flow statement includes cash flow…

Q: Which business transaction will affect the quick ratio?     a. Purchase a fixed asset with money…

A: The quick assets ratio is calculated as quick assets divided by current liabilities.

Q: What is an account payable? OA. It is a liability for goods or services purchased on credit and…

A: Account payable  means the amount owed by business to outsider for the goods received and services…

Q: The owner's equity is computed as follows: Cash inflows less cash outflows Revenues less expenses…

A: Revenue: Revenue or Sales revenue is the amount earned by the company by selling the goods or…

Q: Profit is the difference between? a. Assets and liabilities b. Assets and equities c. The assets…

A: Assets, liabilities, equity, incomes and expenses are important terms that are being used in…

Q: Which of the following normally has a net credit balance? A. Asset accounts such as cash, accounts…

A: Credit Balance :— It means Credit is greater than debit. It is listed in credit side of trial…

Q: The purchase of supplies for cash will Oa, decrease Cash and increase Accounts Payable. Ob. Increase…

A: ACCOUNTING EQUATION Accounting Equation is a Financial Accounting Technique which represents the…

Q: Changes to net working capital are categorized as:     a. cash flow from operating activities.…

A: Cash flows of company are categorized into 3 parts : Operating, Investing and financing activity

Q: Activity Reason Effect Affects profit Operating Decrease Cash and loss

A:

Q: A credit may represent a(n): increase in an asset account. increase in a liability account. decrease…

A: Debit Amounts:Accounts having typical debit balances include, for example:Cash, receivables,…

Q: What is the primary goal of credit management? a) Maximizing sales revenue b) Minimizing credit risk…

A: Credit management is a term used to identify accounting functions usually conducted under the…

Q: Revenues are normally considered to have been earned whena. All possibility of return has expired.b.…

A: Revenue Recognition: Revenue recognition refers to recording revenue in the books of accounts.…

Q: True or false Credits Increases in liabilities and revenue. Decrease in assets and expenses?

A: Assets - Assets are the resources owned by the company from the capital invested. Liabilities -…