The primary objective of offering a cash discount is to ____. reduce the firm's level of...
The primary objective of offering a cash discount is to ____.
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Homework Answers
Ans reduce the firm's level of receivables investment
The primary objective of offering a cash discount is to reduce the firm's level of receivables investment. Cash discount decreases receivables in the hands of the company and therefore increasing the cash flows in the hands of the company. It ensures more working capital in the hands of company leading to smoother functioning of the business.
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The primary objective of offering a cash discount is to
____.
reduce the firm's level of...
7. Money market securities have which of the following characteristics? I. long maturities II. low default risk III. high degree of liquidity IV. low rates of return a) I and III only b) II and I...
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Chapter 11, Section 11.2, Problem 013 Over the past three years, Ars Supermarket has observed the following distribution of modes of payment in the express lines: cash C) 55%, checks o credit or...
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auditing
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Chapter 11, Section 11.2, Problem 013 Over the past three years, Ars Supermarket has observed the following distribution of modes of payment in the express lines: cash C) 55%, checks o credit or debit cards Iss, and other (N) 13%. In an effort to make express check out more efficient, Arts has Just begun offering a 1% discount for cash payment in the express checkout line. The follo eng table lists the requency distribution of the modes of payment for...
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Annual sales $9,700,000 Cost of goods sold $7,275,000 Inventory $3,200,000 Accounts receivable $1,800,000 Accounts payable $2,400,000 Blue Ostrich's CFO is interested in determining the length of time funds are tied up in working capital. Use the information in the preceding table to complete the following table. (Note: Use 365 days as the length of a year in all calculations, and round all values to two decimal places.) Value Inventory conversion period Average collection period Payables deferral period Cash conversion cycle...
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auditing
Part Two: Multiple Choice Questions: (2.5 marks/ question) 1. To test the existence assertion for recorded receivables, an auditor would select a sample from the A) Sales orders file. B) Customer purchase orders C) Accounts receivable subsidiary ledger D) Shipping documents (bill of lading) file. 2. When control risk for the existence assertion is assessed at a high level, which of the Gallerine is a likely effect with respect to the auditors' confirmation of receivables? A) The account balances...
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