Finance

There are a variety of ways to produce pro forma statements, but they

There are a variety of ways to produce pro forma statements, but they usually rely on two primary inputs. One of these primary inputs is ________. A) the projected sales for the current year B) the projected sales for the past year C) the prior year’s financial statements D) this year’s financial statements     […]

Read full post

Date: September 19th, 2020

A firm purchased raw materials on account and paid for them within 30

A firm purchased raw materials on account and paid for them within 30 days. The raw materials were used in manufacturing a finished good sold on account 100 days after the raw materials were purchased. The customer paid for the finished good 60 days later. The firm’s cash conversion cycle is ________ days. A) 10 […]

Read full post

Date: September 19th, 2020

Banker’s acceptances are financial assets sold by a company directly t

Banker’s acceptances are financial assets sold by a company directly to investors, like bonds and common stock, but with very short maturity dates, while commercial paper is for self-liquidating inventories. Indicate whether the statement is true or false.     ANSWER Answer: FALSE Explanation: COMMERCIAL PAPER is a financial asset sold by a company directly […]

Read full post

Date: September 19th, 2020

A marketable security is an unsecured bank loan whereby the bank agree

A marketable security is an unsecured bank loan whereby the bank agrees to lend a company up to a specific amount of cash, at the discretion of the company. Indicate whether the statement is true or false.     ANSWER Answer: FALSE Explanation: A LINE OF CREDIT is an unsecured bank loan whereby the bank […]

Read full post

Date: September 19th, 2020