"A compensating balance essentially increases the interest rate on money borrowed." Explain.
Answer to relevant Questions"Cash is only 3% of our total assets. Therefore, we should not waste time designing systems to manage cash. We should use our time on matters that have a better chance of affecting our profits." Do you agree? Explain.Suppose Accenture sold software with a retail value of $240,000 to Atlanta Pictures, Inc. Instead of receiving cash, Accenture received 22,000 shares of Atlanta Pictures stock, which at the time was selling for $10 per ...Distinguish between a trade discount and a cash discount. If a company accepts bank credit cards, why might it accept specific cards instead of all of them? For example, some retailers accept VISA and MasterCard, but not American Express or Diner's Club , while the exact opposite ...Many states base their sales tax on gross sales less any discount. Trade-in allowances are not discounts, so companies cannot deduct them from the sales price for sales tax purposes. Suppose Jit Eap had decided to trade in ...
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