BUSINESS HIGH SCHOOL

Q 8.17: The financial statements of the Larson Company report net sales of $1,000,000 and accounts receivable of $80,000 and $60,000 at the beginning of the year and end of year, respectively. What is the average collection period for accounts receivable in days

Answers

Answer 1
Answer:

Answer:

25.55 days

Explanation:

first we must calculate the accounts receivable turnover ratio = net sales / average accounts receivable

net sales = $1,000,000

average accounts receivable ($80,000 + $60,000) / 2 = $70,000

accounts receivable turnover ratio = $1,000,000 / $70,000 = 14.286

average collection period = 365 days / accounts receivable turnover ratio = 365 / 14.286 = 25.55 days

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Which of the following options is important to research when planning to expand delivery of products and services to customers across the globe?A. What times of the day international shoppers are onlineB. The legal and tax considerations in that marketC. Which social channels are popular in that marketD. Which couriers offer the cheapest services for global shipping
product development or product design entails a process of balancing which types of considerations? (choose every correct answer.)
For whom are goods and services produced in a market economy?
An economy grows, reaches a peak, then begins a downturn, followed by a period of negative growth (a contraction), that ends in a trough before the next upturn. These ups and downs in an economy are often referred to as __________. A. boomsB. contractions C. business cycles D. recession and inflation

Is it possible for accounting profit to be positive and economic profit to be negative?

Answers

Answer:

Yes.

Explanation:

We know,

Accounting profit = Revenue - Explicit cost.

Economic profit = Revenue - Explicit cost - Implicit cost

Explicit cost is the day to day expenses, while the implicit cost is the expanses that have already occurred.

Therefore, the explicit cost may not be higher than the revenue. So accounting profit can be positive.

However, as we have to deduct the explicit cost as well as implicit cost from economic profit, it can be positive, negative, or even zero. So the statement is correct.

Final answer:

It is possible for accounting profit to be positive and economic profit to be negative when the implicit costs used in calculating economic profit are greater than the accounting profit. This indicates that the resources used in the business could generate higher returns if invested elsewhere.

Explanation:

Yes, it is indeed possible for accounting profit to be positive while economic profit is negative. This scenario arises due to the difference in what is considered a cost in the computation of each type of profit. Accounting profit is total revenue minus explicit costs, which are direct, out-of-pocket expenses. It does not consider implicit costs, which are the opportunity costs of using resources in one way instead of another. These might include the entrepreneur's time or the potential earnings that could have been generated if capital had been invested elsewhere.

On the other hand, economic profit is total revenue minus total cost, including both explicit and implicit costs. Even when a business is generating a positive accounting profit, if the implicit costs are higher than this accounting profit, the economic profit may be negative. This translates to the business not being as profitable as it could be if the resources had been invested elsewhere. This difference is important because while a business pays income taxes based on its accounting profit, whether it is economically successful depends on its economic profit. The decision to continue a business would depend on positive economic profit.

Learn more about Accounting and Economic Profit here:

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Frictional unemployment occurs when:___________.1. there is friction between an employer and employee. 2. a worker decides to quit one job to seek a different job. 3. a large corporation transfers a worker to another city. 4. college students go back to school at the end of the summer.

Answers

Answer:

2. a worker decides to quit one job to seek a different job.

Explanation:

Frictional unemployment occurs when workers are moving from one job to another. It happens when the available jobs and the workers' skills do not match. For example, a graduate from the university cannot find a job that matches the skills straight away. The period of searching for that first job is called frictional unemployment.

Frictional unemployment is naturally occurring in the economy.  It is present when the economy is in full employment.  It is present as workers are always searching for better opportunities elsewhere, and students are graduating and searching for their first employment.

If an adjustment for $7,500 in accrued revenues is omitted, how will this affect the financial statements?a. There will be no effect on the financial statements.
b. Net income will be understated by $7,500.
c. Accounts Receivable will be overstated by $7,500.
d. Net income will be overstated by $7,500.

Answers

The right answer for the question that is being asked and shown above is that: "c. Accounts Receivable will be overstated by $7,500. " If an adjustment for $7,500 in accrued revenues is omitted, the affect that the financial statements is that accounts Receivable will be overstated by $7,500. 

3. The classical dichotomy and the neutrality of money The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction. Megan spends all of her money on comic books and beignets. In 2010 she earned $18.00 per hour, the price of a comic book was $9.00, and the price of a beignet was $1.00. Which of the following give the nominal value of a variable? Check all that apply. Megan's wage is $18.00 per hour in 2010. The price of a beignet is 0.11 comic books in 2010. Megan's wage is 2 comic books per hour in 2010. Which of the following give the real value of a variable? Check all that apply. Megan's wage is 18 beignets per hour in 2010. The price of a comic book is $9.00 in 2010. Megan's wage is $18.00 per hour in 2010. Suppose that the Fed sharply increases the money supply between 2010 and 2015. In 2015, Megan's wage has risen to $36.00 per hour. The price of a comic book is $18.00 and the price of a beignet is $2.00. In 2015, the relative price of a comic book is . Between 2010 and 2015, the nominal value of Megan's wage and the real value of her wage . Monetary neutrality is the proposition that a change in the money supply nominal variables and real variables.

Answers

Megan's wage is 18 beignets per hour in 2010. The price of a comic book is $9.00 in 2010. The price of a comic book is $18.00 and the price of a beignet is $2.00; Monetary neutrality is the proposition that a change in the money supply nominal variables and real variables.The inflation rate is the difference between nominal and real variables. Nominal variables are based on the current prices and are measured in price based on the value they hold at a given time. Real variables are adjusted for the ever changing price level and they change over time. 
The right answer for the question that is being asked and shown above is that: "Megan's wage is 18 beignets per hour in 2010. The price of a comic book is $9.00 in 2010; The price of a comic book is $18.00 and the price of a beignet is $2.00; Monetary neutrality is the proposition that a change in the money supply nominal variables and real variables."

You love peanut butter. You hear on the news that 50 percent of the peanut crop in the South has been wiped out by drought, and that this will cause the price of peanuts to double by the end of the year. As a result,a. your demand for peanut butter will increase, but not until the end of the year.
b. your demand for peanut butter increases today.
c. your demand for peanut butter decreases as you look for a substitute good.
d. your demand for peanut butter shifts left today.

Answers

Answer:

b. your demand for peanut butter increases today.

Explanation:

If the price of a commodity would increase at a later date, consumers would increase demand for the good today. Consumers would be willing to buy as much as they can at the lower price. This would shift the demand curve to the right.

Randy works 50 weeks a year, averaging $500 a week in wages. He is offered a salaried position at $27,500 a year. If he accepts it, he will make ______

Answers

$2,500 more than before

2,500 would be the answer hope this helps
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