Why does a manager expect a higher number of days in accounts payable? a. It provides an opportunity to pay later and to use available funds for more days. b. It increases expenditure. c. It helps to collect money from customers early. d. It is a managerial efficiency.
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7.
Why does a manager expect a higher number of days in accounts payable?
It provides an opportunity to pay later and to use available funds for more days.
It increases expenditure.
It helps to collect money from customers early.
It is a managerial efficiency.
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Solved in 2 steps
- Operating cycles and cash cycles are two short-term areas a financial manager must keep track of in managing a business. How are the operating and cash cycles of the firm different? Why are they important?Continuation: These positions do not entail a salary as we anticipate that our efforts will yield returns in the form of profits generated during the business simulation. Instead of wages, our focus is on maximizing income through efficient operations and effective strategies throughout the duration of the simulation. Table 9. Administrative Expenses Particulars Rate per Day Manager Care of Mandaragon Cashier Care of Amanoddin & Tumayao Financial Manager Care of Tumayao Total Php 0.00 Selling and Administrative Expenses Since selling and administrative costs are covered by CupEat members, no further expenditures will be necessary. Table 10. Selling and Administrative Expenses Particulars Total Expense Administrative Expenses Cover of CupEat members Communication Expense Cover of CupEat members Promotional Expense Cover of CupEat members Total Php 0.00…A fellow student studying managerial accounting says. The net present value (NPV) weighs early receipts of cash much more heavily than more distant receipts of cash. Do you agree or disagree? Why?
- Companies often try to keep accounting earnings growing at a relatively steady pace, thereby avoiding large swings in earnings from period to period. They also try to meet earnings targets. To do so, they use a variety of tactics. The simplest way is to control the timing of accounting revenues and costs, which all firms can do to at least some extent. For example, if earnings are looking too low this quarter, then some accounting costs can be deferred until next quarter. This practice is called earnings management. It is common, and it raises a lot of questions. Why do firms do it? Why are firms even allowed to do it under GAAP? Is it ethical? What are the implications for cash flow and shareholder wealth?Which of the following will decrease the length of the operating cycle? 1 Reducing the production period 2 A decrease in the period of credit given by suppliers 3 A decrease in the period of credit given to customers Select one: A. 1& 2 B. 1 & 3 C. 2 & 3 D. All of the aboveSteadily increasing cost of goods sold as a percentage of net revenues is an indication ofa. decreasing earnings quality.b. increasing earnings quality.c. financial statement fraud.d. increasing production efficiencies.
- Why then do managers use the payback method. Keep in mind that it’s not because they are lazy or uneducated. Those in the Finance Departments all have extensive training in Finance and Accounting. No, there is a reason above and beyond the fact that it is easy to use. Think of which industries need to get a quick return on their investments, like the fashion industry and why payback would be useful for them.Why might a manager focused solely on accounting numbers miss opportunities for future benefits?4.What decisions do managers take that is focused on the financial wellbeing of the company and sometimes includes acquisition of assets, financing and raising funds and capital? A. Financial Decision B. Investment Decision C. Capital Budget Decision 5. What are decisions that mangers usually make? A. Investment, Financial, Dividend Decisions B. Investment, Capital, Dividend Decisions C. Investment, Financial, Capital Decisions 6.Which of the following cannot be considered as an example of Investment Decision? A. Investment in Plant and Machinery B. The decision to enter a new market C. Giving dividends
- Explain how knowledge of managerial accounting can assist a manager with regard to the following concerns: He is deciding whether to push through with a project. He is determining whether a branch is profitable or not. He is deciding whether to process a certain product further before selling. He would like to show to the Board of Directors how the business is financially performing and how cash is being used. He would like to plan for the year so that he will be prepared to deal with shortage of cash fund.Select the answer that best describes what is being asked. Consider the given table below: 1. How many teller/s incur/s the highest expected cost? a. 1 teller b. 2 tellers c. 3 tellers d. 4 tellers 2. How many number of teller/s incur/s the lowest expected cost? a. 2 tellers b. 3 tellers c. 4 tellers d. 5 tellers 3. What is your managerial decision if you currently have 3 tellers? a. Maintain three tellers b. Reduce the number of customers by limiting the facility c. Employ two additional tellers d. Layoff one tellerWhich statment is correct Statement 1: Finance is the universal lubricant that keeps enterprises runs smoothly. Statement 2: The finance manager regulates inventories, idle time and work stoppages. *
