Payable by the amount of profit on the sale

Assignment Help Finance Basics
Reference no: EM131103424

Is it true that when one firm sells to another on credit, the seller records the transaction as an account receivable while the buyer records it as an account payable and that, disregarding discounts, the receivable typically exceeds the payable by the amount of profit on the sale?

Reference no: EM131103424

Questions Cloud

Five-forces model of competition : Using the Five-Forces Model of Competition, and the company's current SEC 10K report, discuss the advantages the company has over it competition while addressing the following issues:
Explain the rationale for this statement : However, in solving the semisupervised extension of this method, the representer theorem is the right choice. Explain the rationale for this statement.
Compare the computational complexity of the laplacian : Compare the computational complexity of the Laplacian regularized least-squares algorithm with that of the regularized least-squares algorithm using labeled examples only.
Major components of an effective mission statement : 1. Explain the relationship between strategic management and competitive advantage for firms. How can a firm achieve sustained competitive advantage? Apply these concepts to Barnes and Noble (what is their strategy and competitive advantage). (4+ ..
Payable by the amount of profit on the sale : Is it true that when one firm sells to another on credit, the seller records the transaction as an account receivable while the buyer records it as an account payable and that, disregarding discounts, the receivable typically exceeds the payable by t..
Presented below is information related to garth brooks : During the year, the company sold certain equipment for $285,000, recognizing a gain of $69,000. Because the controller believed that new equipment would be needed in the near future, she decided to defer the gain and amortize it over the life of any..
Explain why four steps involved in the controlling function : Explain why the four steps involved in the controlling function are important. Why is a good understanding of the various ratios used by accountants and managers important to the controlling function? Give specific examples. Respond substantively ..
Complete a pest analysis on the external factors : PEST Analysis: Complete a PEST analysis on the external factors that affect the company's readiness to compete. What are the political,economic, social, and technological factors that affect the company?
Graphite turns into which precious mineral : On the surface of the earth Over a long period of time while under extreme heat and pressure, graphite turns into which precious mineral?

Reviews

Write a Review

Finance Basics Questions & Answers

  Analyze the financial performance of the organization

Interpret the operating indicators used to analyze the financial performance of the organization. Indicate specific ways in which this information will help management improve the performance of the organization. Provide support for your rationale..

  Rights issues

Assuming you hold 7000 shares in Argosy Property Ltd, evaluate your wealth position if you opt for each of the actions suggested above

  Q 1 dan is also thinking whether to issue coupon bearing

q. 1 dan is also thinking whether to issue coupon bearing bonds or zero coupon bonds. ytm on either bond issue will be

  What are the merits and demerits of investment on the

what are the merits and demerits of investment on the financial market via different types of mutual

  List 3 reasons for diversifying a portfolio

What is the difference between the Direct Method and Indirect Method for calculating Cash Flow? Explain how the two methods are reconciled and also provide a brief description of each metho

  Examples of global advertising

Why do you think the SMOSH YouTube Channel is so popular amongst teens - Why is a high-tech product more likely to appeal to the same segment

  Reporting practices and ethics paper

Find two or three articles that address financial reporting practices and ethical standards in health care finance, including the following topics:

  Which type of risk declines

Beginning with an investment in one company's securities, as we add securities of other companies to our portfolio, which type of risk declines?

  How much would that investment be worth today

A) If you invested $1000 in the stock market in 1900, how much would that investment be worth today? B) If your investment in 1900 has grown to $1 million, how much did you invest in 1900?

  A company will pay a 450 per share dividend next year the

a company will pay a 4.50 per share dividend next year. the company has pledged to increase its dividend by 4.00

  Determine the components of things like perception

By means of introspection, Dr. Marsh attempts to determine the components of things like perception, thinking, and consciousness. By contrast, Dr. Smyth wants to understand what the mind does in producing different kinds of behavior. We can reason..

  What is the cost of debt to j & b

J & B, Inc. has $5 million of debt outstanding with a coupon rate of 12%. Currently, the yield to maturity on these bonds is 14%. If the firm's tax rate is 40%, what is the cost of debt to J & B?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd