Finance

The sales for October, November, and December are $2,000, $6,000 and $

The sales for October, November, and December are $2,000, $6,000 and $10,000, respectively. For any particular month of sales, the following percentages are received over time in cash for any given month: 20% in cash from that same month of sales; 50% in cash from the previous month’s sales; and 30% in cash from the […]

Read full post

Date: September 19th, 2020

Sales made and actual cash received may differ for any particular mont

Sales made and actual cash received may differ for any particular month. However, sales and cash received must be equal for a calendar year. Indicate whether the statement is true or false.     ANSWER Answer: FALSE Explanation: There is no need nor expectation that these two values be the same in any particular year.

Read full post

Date: September 19th, 2020

Managers know that for cash and credit sales completed in one month th

Managers know that for cash and credit sales completed in one month that all will be recorded as sales revenue in that month, but that the actual cash flow will take place over a longer period of time because of ________. A) credit sales B) erosion C) foreclosure D) transit time     ANSWER Answer: […]

Read full post

Date: September 19th, 2020

Which one of the costs below is NOT a production cost? A) The wages p

Which one of the costs below is NOT a production cost? A) The wages paid to workers B) The raw materials for manufacturing products C) The dividends paid to shareholders D) The shipping costs that get the product to the customer     ANSWER Answer: C Explanation: C) Production costs include, among other items, the […]

Read full post

Date: September 19th, 2020

The optimal capital structure is the one that balances ________. A) r

The optimal capital structure is the one that balances ________. A) return and risk factors in order to maximize profits B) return and risk factors in order to maximize earnings per share C) return and risk factors in order to maximize market value D) return and risk factors in order to maximize dividends     […]

Read full post

Date: September 19th, 2020