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vlabodo [156]
2 years ago
13

If a company adopts an accounts receivable factoring program, and accounts for the factoring as a sale of receivables, which of

the following is true in the period the company starts the program (all else equal)? A. The factoring arrangement needs to be with a consolidated entity to qualify for sale accounting. B. The accounts receivable balance will increase. C. Cash flow from operations may increase. D. A retroactive restatement is necessary due to a change in accounting principle.
Business
1 answer:
horsena [70]2 years ago
4 0

Answer:C. cash flow from operations may increase

Explanation:

A factoring system is one in which a firm sell his right to receive payments on it's receivable to a firm referred to as the factor as a discount in which the amount of discount represents the factor fees for taking up the risk.

The factor may be with or without recourse to the firm selling the receivable.

It's mostly entered into to reduce payment defaults and increase inflow of cash for operations.

The factor company does not need to be a consolidated company,it usually reduce the receivable and does not require a change in accounting principles.

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XYZ Corp is doing a study of consumers' use of soap across the US. The questiuonnaire for the sttudy will include questions abou
serious [3.7K]

Answer:

Such a study is best characterized as a non-experimental study.

Explanation:

Non-experimental research is the study whereby a researcher cannot manipulate, control, or change the subjects of a research but instead, the researcher depends on observation, interpretation, or interactions to arrive at a conclusion. This means that in a non-experimental study, the researcher relies on surveys, correlations or case studies.

Non-experimental research has a great level of external validity because it is usually generalized to a bigger population. XYZ Corp making use of a survey is an example of non-experimental study.

8 0
2 years ago
Christine is an unemployed stenographer who cannot find work in Florida. There are several companies hiring stenographers in New
DiKsa [7]

Answer:

Option (b) is correct.

Explanation:

Cyclical unemployment refers to the unemployment that occured because of the fall in the demand for goods and services in an economy. It is largely affected by the fluctuations in economic growth of a country. When the overall demand for goods and services are not matched with the full employment in an economy. This unemployment is mostly occured when the economy of a country is contracting.

8 0
2 years ago
You determined the following information for Big Rapid's Supplies: It has a receivables turnover rate of 23.5 a payables turnove
wlad13 [49]

Answer:

35 days

Explanation:

Receivables turnover rate = 23.5

Payables turnover rate = 12.5

Inventory turnover rate = 19.15

Length of firm's operating cycle :

(Days sales in inventory + average collection period)

Days' sales in inventory = (365 days / inventory turnover ratio)

Days' sales in inventory = (365 / 19.15)

Days's sales in inventory = 18.717 days

Average collection period : (365 / accounts receivable turnover ratio)

Average collection period = (365 / 23.5)

Average collection period = 15.531

(18.717 + 15.531)

= 34.248

= 35 days

4 0
2 years ago
Risk management is a systematic process, and the correct order of the steps is:
zvonat [6]

<span>Risk management is a systematic process where its objectives are to identify, to assess, and to control risks. These risks arise from operational factors and making decisions that maintains the balance between risk costs with the mission benefits. The correct steps are the following: First, the risk must be identified. This means that the team must first uncover, recognize and describe the risks that might possibly affect the project or its outcomes. Second, the risk will then be analyzed.  It is in this step that the team must consider the consequences of each risk according to the nature of the risk.  The potential to affect project goals will also be identified. Third, evaluation and ranking of risks will take place. The magnitude of the risks will be part in the decision-making whether they are acceptable or whether they are serious enough to warrant treatment. Fourth, the risk must be treated. This is also known as the Risk Response Planning.  The highest ranked risks must be identified and plans must be made to treat or modify these so that the desirable risk levels will be attained.  Lastly, the risks shall then be monitored and reviewed.  In this way, all the uncertainties, unpleasant surprises and barriers will be fully monitored and if the team is determined, golden opportunities will instead be achieved. </span>

6 0
2 years ago
Read 2 more answers
On January 2013, Pennington Bancorp acquired $100,000 of marketable securities and classified them as Available for Sale. On Mar
saveliy_v [14]

Answer:

b. Net Income

e. Cash from Investing Activities

Explanation:

Calculation to determine Which of the following items would be increased by the sale of the marketable securities

Using this formula

Gain from investment = Selling price of the security - Value of the security

Let plug in the formula

Gain from investment= $93,000 - $85,000

Gain from investment= $8,000

Based on the above calculation The sell of marketable security will INCREASE CASH which means that CASH FROM INVESTING ACTIVITIES will increase and NET INCOME will increase.

Therefore the items that would be increased by the sale of the marketable securities are :

b. Net Income

e. Cash from Investing Activities

4 0
2 years ago
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