Thinking about various payment terms for Accounts Payable, do you feel it is always valuable for a company to offer early payment discounts, and does this answer change based on the going prime rate?

Q: Which of the following increases the reported receivables in the financial statements? offsetting a…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: What is a sensible credit period? Should the credit period for your company's sales vary depending…

A: Credit period is the days that a customer is allowed to wait before paying the invoice. There is no…

Q: The business needs to record the trade discount in the book of account”. Question Do you agree…

A: Discount means the amount which is not required to be paid or received. Discount is deducted to find…

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: Is it true that, when one firm sells to another on credit, the seller recordsthe transaction as an…

A: When a person sells to another person on credit, it is recorded as accounts receivable in his books.…

Q: Explain when EXACTLY you would prefer the previous balance method to the average daily balance…

A: Previous balance sheet method is a way wherein amount of interest is charged on the previous month…

Q: Which of the following statements is false regarding the different bases used for the allowance…

A: Solution 1: "three bases are generally accepted, the percentage of sales , the percentage of…

Q: Payables and Receivables. As a financial manager, would you prefer that the accounts payable period…

A: The longer the period one can wait to make payment for the inventory, the longer will be the A/P…

Q: Which of the following is not a way of accelerating collection of accounts receivable? Select the…

A: Accounts receivable or AR is the money due to a firm for goods or services delivered or used but not…

Q: Which of the following statements is correct about credit period? A. If a customer purchases goods…

A: Credit sales means when goods of the business are sold on account to customers and customers has not…

Q: When offered with single trade discounts, discount series, and cash discount, would you avail of…

A: Single trade discounts- are discounts that a supplier offers  to customers when  specific condition…

Q: Is granting credit to customers good? And as a future business owner how would you handle or manage…

A: Explanation to Credit When products are sold to customers on credit and customers agree to pay the…

Q: Which one of the following best defines the term credit scoring?  A.  Categorizing customers…

A: The statistical tool used to analyze the performance by lenders and financial institutions so as to…

Q: If you are hoping to get a loan to expand your business, will you welcome the news that the Fed is…

A: fed impact the flow of money through various method such as OMO, change in interest rate.

Q: The customers of the company would like to know its credit worthiness and the terms of payment. O…

A: Accounting concept states the basic principles, assumptions as well as rules that work on the…

Q: Question  The average collection period is the average amount of time that elapses from a credit…

A: Average Collection Period Average collection period is time allowed by the company to its debtors…

Q: what is the average amount of receivables؟ 2-what is the percentage cost of trade credit to…

A: 1) Hence, the average amount of receivables is $70,000.

Q: When offered with single trade discounts or discounts series, would you avail of them right away?…

A: Single trade discounts- are discounts that a supplier offers  to customers when  specific condition…

Q: What is the difference between a nominal account and a real account?

A: Nominal Account: These are the accounts that pertain to Incomes (or Revenues) and Expenses. Thus,…

Q: receivables turnover ratio

A: Receivable turnover ratio is an important accounting metric used to evaluate the performance of…

Q: Explain the trade credit facility provided by some companies to their customers that allow them to…

A: Trade credit Trade credit is a cash discount given to customer by seller to make early payments.…

Q: plain why it is important for a company to keep track of how much money in discounts is given out?…

A: . Percent of cash discount since 3/15, n/45 is the credit term between the seller and buyer which…

Q: Determine amount of discount payable and amount of maturity date:

A: Given in the question: Order Amount  ₱                              70,000.00 Date of…

Q: By restricting credit, and granting short maturities to speed up accounts receivable turnover, sales…

A: Accounts receivable Turnover ratio: This ratio is calculated to determine how often receivable are…

Q: why are accounts receivables inevitable? what advantage do selling on account offer?

A: The amount of money owing to a corporation by customers for goods or services previously provided is…

Q: What do you understand from trade and cash discount? How to calculate trade discount, cash discount…

A: SOLUTION- To increase sales revenue and attract more buyers, every company offers trade and cash…

Q: What steps are used to calculate the average daily balance? Many credit cards charge an 18%-24%…

A: Credit cards are the cards which allow an individual to borrow the amount at a prespecified interest…

Q: the discount that is being acquired

A: First option is wrong because the cash discount is the discount given by the seller to the buyer for…

Q: Why do you think businesses extend credit to customers thereby creating accounts receivable?

A: Account receivable means where goods has been sold on credit and amount has not been received.…

Q: How do each of the items in a firm’s credit policy—defined to include the credit period, the…

A: Strong credit policy indicates the effectiveness of credit management. The four components of credit…

Q: Explain how a credit card billing cycle works. What is a grace period, and when is the best time to…

A: A credit card gives a customer a line for a short time period, based on given term and condition of…

Q: Explain when EXACTLY you would prefer the previous balance method to the average daily balance…

A: The previous balance approach of estimating finance costs uses the balance at the start of the…

Q: Which of the following is indicative of discounts received from a supplier on account of early…

A: solution concept Quantity discount : discount given when large quantity is purchased Value discount…

Q: Effective credit management involves establishing credit standards for extending credit to…

A: Company provide credit to customers and discount to customers to increase sales.

Q: three answers for changes in credit standards that are causes of changes in profits: A) Decrease…

A: Step 1 The term "credit levels" represents the basic principles of credit extension for customers.…

Q: If NetSolutions sells a customer some products on account (accounts receivable) and offers a…

A: A discount refers to amount deducted from the normal selling price.

Q: Which of the following would not result in a reduction of the amount invoiced to a customer when a…

A: The discount decreases the amount of payment to be paid to creditors or to be received from…