True or False: Accounts receivable is a liability that reflects credit sales. It is very common and
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Question:
True or False:
- Accounts receivable is a liability that reflects credit sales.
- It is very common and not immoral that due to time considerations, the balances of funds in the cash account at the bank are not equal to the balance recorded in the client's ledgers.
- Notes payable represent a spontaneous source of funding when sales increase.
- Many firms prepare long-term budgets called operating budgets.
- An annuity is like an IRA
- Ethical dilemmas are common in finance.
- One of the advantages of competition is that the prices of products and services decrease, especially in the long term.
- In a common size income statement, each part of the income statement is expressed as a percentage of total assets.
- One of the most important advantages of holding debt is that it helps us build a credit history.
- Commercial paper is an unsecured promissory note.
- The most important reason to keep cash on balance sheet is transaction requirements transaction motives - requirements.
- The goal of maximizing profits in some way emphasizes the efficient use of economic resources from it.
- You have to be conservative with current assets as the risks of not paying debts on time are minimized.
- The cash budget can be used to provide an estimate of the company's future financing needs.
- A progressive budget is one that is added a month at the end, when it has elapsed.
- In accounts receivable management, the 2% cash discount that is usually offered is immaterial.
- The cement consumption and sales index is an economic indicator.
- The individual business can be described as the absence of any legal structure.
- In a commercial partnership structure, all shareholders have unlimited debts from the action of any other partner, when the latter is conducting business for the partnership.
- All merchandise inventories are considered excellent collateral in financing, especially banking.
- Some countries participate in wars as they can be economic stabilizers.
- Payroll taxes and employee withholdings are a frequent constraint on business profits.
- Merchandise inventory can be a short-term financing instrument as long as it has the characteristic that it does not lose value over time and that it is marketable.
- A bonus that pays $120.00 in interest per year forever is an example of an annuity.
- A firm is technically insolvent if it does not have the necessary liquidity to make payments on its current debts.
Related Book For
Accounting Principles Part 1
ISBN: 978-1118306789
6th Canadian edition
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Kinnear, Joan E. Barlow
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