What is a question that should be asked about accounts payable when forecasting? a.) What are the costs associated with storing goods? b.) How much bad debt should be anticipated? c.) How much cash is needed on hand to meet current liabilities? d.) How quickly can we replenish goods?

Q: Hi, I want to ask about the Cash Over and Short Account. Why and how does this account exist? Where…

A: Step 1 An account in the general ledger in which the amount by which actual ending cash balance…

Q: How can the company reduce the level of uncollectible accounts and increase the likelihood that…

A: Uncollectible accounts are those accounts of accounts receivables on which amount due can not be…

Q: Determine the decision nature of each of the following issues: Will we purchase on credit or will we…

A: Purchase decision can be defined as the thought process that leading a consumer from identifying a…

Q: Which of the following is not a current asset? Inventory Trade receivables Building Cash at bank

A: Current Assets- are assets that can be converted into cash within one operating cycle i.e.,  assets…

Q: Which of the following account will be least likely involved in the purchasing sub-process of the…

A: Purchasing and Disbursement Cycle is the whole process which starts with purchase of inventory and…

Q: The objectives of Receivables Management are as follows:   a. All of above   O b. To maintain…

A: Lets understand the meaning of receivable management. As the term suggest, receivable management is…

Q: 1. One of the assessments made in credit sales is unwillingness to pay, please explain what is meant…

A: Note : As per the guidelines, only first question will be answered. Kindly post the remaining parts…

Q: Capital structure refers to a measure of how long it takes to convert inventory into cash. O True…

A: Cpaital Structure :— Capital Structure is refers to the specific Mix of Debt and Equity used to…

Q: A ____ will cause Cost of Goods Sold to decrease. A. Debit  B. Credit

A: Cost of Goods Sold means Cost involved in making of goods or providing services. Direct Material,…

Q: Which of the following is an advantage of using the net price method for recording cash discounts on…

A: At the time of recording credit sales, there can be some provision for discount to be given. So,…

Q: Which of the following is most likely to be used in determining a proper amount to be included in…

A: Allowance for doubtful accounts is a kind of contra asset account. It is used to decrease the value…

Q: If you were asked to lend money to your cousin’s clothing store to help her through a slow sales…

A: Ratio is a tool which is used to measure or evaluate the performance or growth of the firm by…

Q: Which income statement account(s) would be affected by a policy choice at the same time as the…

A: Inventory is directly related to the cost of goods sold. To change the policy of valuation of…

Q: Which is correct with regards to the effects of restricting credit standards? * O An increase in…

A: A credit policy lays out the conditions under which consumers who purchase on credit must pay back…

Q: Which of the following is not a basic principle of cash management? Keep inventory levels high.…

A: Cash management is the process of collection and management of cash flows in the organization. For a…

Q: Which of the following are the suppliers of goods/services whose invoices have not yet been paid? a.…

A: Accounting can be done in  both cash and accrual method

Q: How can cash discounts be used to influence sales volume and the DSO?

A: Days Sales Outstanding (DSO) is the total amount of days it takes to turn credit transactions into…

Q: What are the reasons that a company gives trade discounts?Why are trade discounts not recorded in…

A: A reduction in list or catalog price which is granted by the supplier of goods/services can be…

Q: How does collection policy influence sales and the bad debt expenses

A: Solution Note : Dear students as per the Q&A guidelines we are required to answer the first…

Q: How can you predict the length of the cash conversion cycle within that cycle for a parts store?

A: Business wants to measure the cycle of the cash so that it can be helpful in the decision and…

Q: How much is the purchase discounts? How much is input tax on purchases? How much is input tax to be…

A: Input tax is the amount of tax which a business pays it to the vendors on the purchasing of the…

Q: Which of the following are the suppliers of goods/services whose invoices have not yet been paid?…

A: Option Explanation a Unsold goods are included in the inventory b Cash is unspent money. c…

Q: Are any time lags in recording economic events typically experienced in cash disbursements systems?…

A: Payroll System:   A payroll system is a system within an organization that is responsible for…

Q: Which of the following adjustments would NOT be made to net income when computing cash from…

A: Introduction: Statement of cash flows: All cash in and out transactions are recorded in statement of…

Q: The operating cycle is best described as the time between a.the formation of the company and the…

A: The amount of time a corporation spends between spending money on operational activities and…

Q: ch of the following is used in computing cash payments for merchandise using the direct method?…

A: Merchandise refers to the variant types of commodities or goods that are being produced and sold by…

Q: If cash is collected at the sale: A.the operating cycle will be longer than if sold on credit B.the…

A: Lets understand the basics.  Operating cycle is a company's cycle from the investing cash into raw…

Q: Suppose a firm's cash inflows and outflows are variable but completely predictable. How are the…

A: 1) Assume that a company's income and expenses are both variable yet predictable. How do the…

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 statement is true about the operating cycle a. the time needed from acquiring inventory from…

A: The operating cycle is the average period of time or days required for a business to make an initial…

Q: which of the following account will be least likely involved in the purhasing sub-process of the…

A: The journal entries are prepared to keep the record of day to day transactions of the business.  The…

Q: The cash price of an item is the amount you would have paid if the full amount were paid at the time…

A: Cash Price Basis Sales: In this system of sales full price of an item, the customer has to pay at…

Q: credit terms are terms for a. when the payments for merchandise are to be made b. when inventory is…

A: Credit terms refers to the agreement made between the seller and the buyer which defines the timing…

Q: Which of the following ratios (from a potential customer) would be of primary importance to a seller…

A: Formula: Earnings per share = ( Net income - Preferred dividends ) / number of outstanding shares

Q: Which of the following changes in credit standards and conditions would cause an improvement in…

A: Credit standards refer to the credit policies of a company, the credit period it extends and the…

Q: What is the amount of sales under cash basis?  What is the amount of purchases under cash basis?…

A: Solution Note : as per the Q&A guideline we are required to answer the first three subparts only…

Q: When a company decides to sell its goods on credit, it should evaluate the effect on profit of…

A: An inflow of money either from sales or services by doing business activities is called revenue. It…

Q: Which of the following accounts are characterized as a "contra" account? (Select ALL tha apply) O…

A: Contra account: Contra effect of the transaction recorded on the opposite side

Q: Which of the following assets would not be included as a quick asset? a.Merchandise inventory b.Cash…

A: We first need to understand the meaning of quick asset. Quick assets are the assets which is…

Q: Which of the following shows how paying cash to purchase supplies will affect a company's financial…

A: Day to day transaction are the basis for the preparation of Company's Financial Statements. If a…

Q: Which of the following account will be least likely involved in the purchasing sub-process of the…

A: The purchasing sub-process of the purchasing and disbursement cycle starts with authorization of…

Q: The company may need to borrow money if : a. total cash available is more than the cash needed for…

A: Cash budget is the very important budget in the business which lists down all expected cash,…

Q: ich of the following account will be least likely involved in the purchasing sub-process of the…

A: Solution: Purchasing and disbursement cycle is the cycle in which purchasing needs of a business are…

Q: What two purposes do firms achieve by estimating future uncollectible accounts?

A: What two purposes do firms achieve by estimating future uncollectible accounts?

Q: To determine cash payments for merchandise for the statement of cash flows using the direct method,…

A: Cash flow statement shows all cash inflows and cash outflows of the business during the particular…