Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
10th Edition
ISBN: 9781337902571
Author: Eugene F. Brigham, Joel F. Houston
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Question
Chapter 15, Problem 9Q
Summary Introduction
To explain: The reason behind the treatment of accruals, as spontaneous source of funds and their limited use by firms. The cost of accruals to use.
Introduction:
Accruals:
The incurred expenses without payment of cash related to those expenses are termed as accruals. These are classified as current liabilities (short-term) in the financial statements.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Why are accruals called spontaneous sources of funds, what are their costs, and why don’tfirms use more of them?
What are the Factors That Complicate Capital Investment Analysis?
What is Capital Rationing?
What should a firm’s goal be regarding the cash conversion cycle? Explain
Chapter 15 Solutions
Fundamentals Of Financial Management, Concise Edition (mindtap Course List)
Ch. 15 - What are some pros and cons of holding high levels...Ch. 15 - Prob. 2QCh. 15 - Prob. 3QCh. 15 - Prob. 4QCh. 15 - What are the four key factors in a firms credit...Ch. 15 - Prob. 6QCh. 15 - Why is some trade credit called free while other...Ch. 15 - Prob. 9QCh. 15 - Indicate using a (+), (), or (0) whether each of...Ch. 15 - Prob. 1P
Ch. 15 - Prob. 2PCh. 15 - COST OF TRADE CREDIT AND BANK LOAM Lancaster...Ch. 15 - CASH CONVERSION CYCLE Zane Corporation has an...Ch. 15 - RECEIVABLES INVESTMENT McEwan Industries sells on...Ch. 15 - WORKING CAPITAL INVESTMENT Pasha Corporation...Ch. 15 - Prob. 7PCh. 15 - CURRENT ASSETS INVESTMENT POLICY Rentz Corporation...Ch. 15 - LOCKBOX SYSTEM Fisher-Gardner Corporation (FGC)...Ch. 15 - CASH BUDGETING Helen Bowers, owner of Helens...Ch. 15 - Prob. 12IC
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Similar questions
- In what way are profitability and efficiency related? How are profitability and liquidity related?arrow_forwardWhat is the market economy?How dothe financial marketsinteractwith product and labor markets to allocate scarce resources efficiently in the market economy?arrow_forwardWhat should a firm’s goal be regarding the cash conversion cycle,holding other things constant? Explain your answer.arrow_forward
- Is the cash conversion cycle useful and important in financial analysis? Explainarrow_forwardWhat is the main drawback of using income from operations to measure the effectiveness of investment centers?arrow_forwardExplain the concept of intrinsic value, and critically appraise whether firms that have higher free cash flows should also have a higher value.arrow_forward
arrow_back_ios
arrow_forward_ios
Recommended textbooks for you
- EBK CONTEMPORARY FINANCIAL MANAGEMENTFinanceISBN:9781337514835Author:MOYERPublisher:CENGAGE LEARNING - CONSIGNMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:9781337514835
Author:MOYER
Publisher:CENGAGE LEARNING - CONSIGNMENT