o 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 use

Q: When cash is drawn from bank for business use the entry type will be? Select one: a. Contra entry b.…

A: a. Contra Entry - These are the transactions that involves  cash and bank account. b. Compound Entry…

Q: indicators that a company is doing an effective job at managing accounts receivable

A: Accounts receivable is the earnings of the company for which the payment has not been made by the…

Q: The type of deposit account preferred by business organizations is: Current deposits Savings bank…

A: Bank offers different types of accounts named as savings, current overdraft, and many others…

Q: The accounting treatment of a transfer fees by a bank is: a. An interest income b. An interest…

A: Introduction: Interest: Interest is the amount charged on the principle amount. Interest is…

Q: 14- What is the main purpose of factoring in accounts receivables? a. To meet immediate cash needs…

A: The main purpose of factoring in accounts receivables is to generate cash from such assets to meet…

Q: What type of financial information are accessed by the users to make decisions? a. Composition of…

A: Accounting is essential to operating a company since it allows businesses to track income and…

Q: The speculative motive is the need to hold cash      O a. To pay outstanding checks       b.…

A: There are many objectives of maintaining cash with company but there are speculation objectives also…

Q: Indicate whether each of the following statements is true or false. a) Loaning cash to another…

A: Cash flow from operating activities: In this part of the cash flow statement, cash is indicates the…

Q: Among the transactions of Salem, Inc., were the following. Made payments on accounts payable to…

A: Answer:

Q: Choose from the following list of terms and phrases to best complete the following statements. a.…

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: The main purpose of factoring accounts receivable is a. To invest accounts receivable in another…

A: Factoring is a financial transaction in which a company sells its receivable to a financial company…

Q: Complete the below table indicating (a) whether each transaction increases (+), decreases (-), or…

A: Cash transaction means the transaction in which the cash payment or cash receipt is involved. It…

Q: Accounts receivable is the amount payable by the customer to the company for the goods delivered and…

A: Bad debts are considered to be estimated based on 2.5% of total credit sales. Therefore, the bad…

Q: A company repays its bank borrowings.  The entry to record that transaction should be Group of…

A: Borrowing means where business taken loan from outsider to be used in business and repaid later.

Q: secure means of storing money in which individuals or business can deposit or withdraw money as…

A: The financial institute is an institute that deals in all types of financial services and with…

Q: Using the categories of liquidity, profitability and operations management describe which ratios…

A: Solution Ratios analysis is used to determine the information regarding organisation's…

Q: he ___________ is the process by which a company spends cash, generates revenues, and receives cash…

A: Solution Concept In a business there may be various activities conducted Every business has its core…

Q: Which of the following options indicate how quickly accounts receivables are converted into cash?…

A: Accounts receivables are those customer accounts to whom business has made credit sales. Every…

Q: 1- Depositors are free to decide the frequency and amount of their transactions Group starts. True…

A: 1) False.  This is because the frequency and amount of transaction to be done is always decided and…

Q: Which of the following is correct regarding cash basis of accounting? a. Sales include cash sales…

A: Under cash accounting, the incomes and expenses are recognised when they are received or paid and…

Q: Explain how bills of endorsement work. Are they classified as Off-Balance-Sheet (OBS) assets or OBS…

A: An endorsement of bill is defined as the procedure through the bill holder or maker for bill…

Q: able. b. What steps should be taken by a business to reduce/eliminate excessive inventory? Explain…

A: A cash on delivery (COD) transaction occurs when the recipient pays for an item in cash rather than…

Q: Which of the following transactions is credited? A) WHEN CHARGED B) PURCHASE OF COMMERCIAL GOODS…

A: Credit transaction: Any transaction by the terms of which the repayment of money loaned, or loan…

Q: Cash has a normal debit balance.  What does this mean in accounting?  Be specific and provide as…

A: Current assets are those assets that can be converted into cash within a year whereas noncurrent…

Q: In which of the following transaction, bank account will be debited? O a. Purchased goods on cash O…

A: SOLUTION- Cash Deposit In To Bank is Simply Transfer the Cash From Location to Another , The Asset…

Q: The accounting assumption that states an owner of a business must keep the business checkbook…

A: Accounting Assumption :— It is set of standard rules that are provided by financial accounting…

Q: it is urgent  A promise received from a business's customers to pay for goods and services that…

A: Introduction Sales may be defined as the activity of exchanging goods and services for money. It may…

Q: In simpler terms, revenue is the inflow of cash or accounts receivable that a business receives when…

A: Financial Accounting:   It refers to the process of recording the financial transactions of the…

Q: business cash consist of many things. Identify which one of the following will be considered as…

A: Credit card is considered as a cash Equivalent....

Q: Which of the following journal entries is correct when a business entity uses cash to pay an account…

A: The journal entry is the initial reporting made to the books of accounts with regard to the…

Q: Select TWO true statements about money. a. Base money is equal to cash plus commercial bank reserves…

A: Money: Money as a means of transaction is playing a significant role in today's world economy. Money…

Q: What is the main purpose of factoring in accounts receivables? a. To meet immediate cash needs of…

A: Account receivable means the amount due from customer whom we sold the goods on credit. Factoring…

Q: Which of the following is the primary reason why a company sells it receivables to another entity?…

A: Accounts receivable represents the amount that is due to be received by the customer of the company.…

Q: A cash discount on purchases should be debited to ______________ Select one: A. a revenue account…

A: The answer is provided as follows:

Q: Which of the following is not an example of a cash outflow?   Select one: a. Purchase of…

A: Cash outflow: It can be defined as the disbursement or payment in cash for meeting the expenditures…

Q: hich of the following should be recorded in Accounts Receivable? Group of answer choices Receivables…

A: Accounts Receivable means the amount to be received from customers in respect of sales effected or…

Q: Business makes payment of Bank loan. Which of the following is the correct journal entry? a. Dr Bank…

A: Journal Entry: Journal entry is the act of keeping records of transactions in an accounting journal.…

Q: Explain the primary goal of maintaining a cash book. Use a case study company of your own choice to…

A: The answer is stated below:             Note: Answering the first question as there are multiple…

Q: Which of the following is not normally increased by a cash inflow transaction?   a) Advances from…

A: Solution: "Deposits on returnable containers"  is not normally increased by a cash inflow…

Q: 11-What is the main purpose of factoring in accounts receivables? a. To create an additional…

A: The account receivables are the assets that includes the amount due from the customers.