Explain how suppliers and creditors evaluate the liquidity of a client based on the customer's payment behavior.

Q: A company that was to be liquidated had the following liabilities: 10,000 100,000 251,050 12,950…

A: Unsecured creditors are those individuals or companies that lend money without obtaining any…

Q: protect consumers' financial information?

A: Financial information refers to data that can be measured in monetary terms and stored in the…

Q: in managing accounts receivables, objectives must be achieved?

A: Working capital is calculated as the difference between the value of current assets and current…

Q: Explain the importance of financial accounting information for external parties—primarilyinvestors…

A: Financial Accounting:-Summarizing of all the transactions that occurred in the business during the…

Q: What is the purpose of the following control procedures (i.e., what threats is it designed to…

A: To protect the assets and to enhance the accuracy and reliability of its accounting records,…

Q: Describe Deposits and Advances from Customers.

A: Accounting:   Accounting is a system, or a process of collecting and organizing economic…

Q: Which of the following represents amounts owed for goods, supplies, or services purchased? Group of…

A: The question is asking to identify the term that represents the amounts that a company owes for…

Q: What is the purpose of preparing trading and profit and loss account?

A: Trading Account The majority of the trading account is made up of credit and debit. Direct expenses…

Q: Which company better manages its receivables, inventories, and payables?

A: 1. High  days payable outstanding  is always favorable for company because High  days payable…

Q: Define creditors.

A: Creditor: A creditor is a person or a company who has provided fund or loan, and hence, have a claim…

Q: While reporting revenue, how a company should consider barter arrangement and discount?

A: Revenue Reporting: The process of accounting for revenue for a product you offer to a client is…

Q: Define Receivable Management and Credit Policies

A: Receivable Management : managing the outstanding   Credit Policies  : Selling on credit to parties…

Q: Why creditors control account may have debit balance

A: The creditor's control account displays the amount a firm has to give to the suppliers.

Q: What are the main definitions of credit facilitation, billing and invoicing, remittance processing,…

A: Credit facilitation-Credit facilitator refers to a person in the CFP Online System who is designated…

Q: Explain Prorations, Escrow Costs, and Payments to Third Parties?

A: Prorations, Escrow Costs and Payment to Third Parties all are methods of payments as per different…

Q: n the methods

A: Liquidity of the customer can be judge through calculating liquidity ratio. Liquidity Ratio is the…

Q: What is the primary means of conveying financial information to external users?

A: Financial reporting: Financial reporting is the procedure to communicate the financial information…

Q: What is the importance of financial information for entreprenuers? Briefly describe the key…

A: Importance of financial information:Identify business problems: Financial information helps to…

Q: How do each of the items in a firm’s credit policy—defined to include the credit period, the…

A: Strong credit policy indicates the effectiveness of credit management. The four components of credit…

Q: When a company decides to extend credit to consumers, it is making an investment decision in: a.…

A: A company often decides to extend credit to consumers. The decision is made on the logic that credit…

Q: Identify the different types of liabilities, how judgment can affect liability recognition and…

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: Who benefits from cash discounts, and how can an auditor verify that they are being given in line…

A: This question explains about the cash discounts, and an auditor verifying that they are being given…

Q: Explain how suppliers and creditors use a customer’s payment practices to judge liquidity.

A: Introduction: Liquidity is the ability of the company to meet its immediate or short-term debt…

Q: Explain the relationship between a payor bank and its customers.

A: Introduction: Payor bank can be defined as a bank which is the drawee of a draft.

Q: In financial accounts, how are interfund transactions accounted for

A: An accounting firm's financial statements serve as concise summaries of its activities, conveyed…

Q: Refundable deposits paid to suppliers should be included in the financial statements as:

A: Current liability: Current liability is a debt that the companies need to pay the debts from…

Q: how to bill customer using accrual-basis accounting

A: in Accruals accounting of income or revenue they are billed when goods or services are given but…

Q: WHAT IS THE LOAN FACILITY THAT WILL BE USED TO COVER THE DEPOSIT AND CLOSING COST

A: Credit facility Meaning: Credit facility is type of loan that is made business and corporate…

Q: Explain what factors a company consider to manage their accounts receivable.

A: Accounts receivable refer to the amounts owed to a company by its customers for goods or services…