**Knowledge Check 01**Sellers allow customers to use credit cards for all of the following reasons: *(You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)*- ☐ Seller does not have to decide who gets credit.- ☐ Seller accepts the risk for extending credit to customers.- ☐ Seller receives cash sooner than if credit is granted directly to the customers.- ☑ May allow seller to increase sales volume.- ☐ Seller determines which customers receive credit and how much.

Credit cards refer to a credit facility that is provided by banks for allowing customers to borrow…

Answered: Sellers allow customers to use credit…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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On September 1, 2023, Kingbird, Inc. sold goods to Ayayai Corp., a new customer. Before shipping the goods, Kingbird's credit and collections department conducted a credit check and determined that Ayayai is a high credit-risk customer. As a result, Kingbird did not provide Ayayai with open credit by recording the sale as an account receivable. Instead, Kingbird required Ayayai to provide a non-interest-bearing promissory note for $32,700 face value, to be repaid in one year. Ayayai has a credit rating that requires it to pay 9% interest on borrowed funds. Kingbird pays 7% interest on a loan recently obtained from its local bank. Kingbird has a December 31 year end and follows IFRS. Click here to view the factor table PRESENT VALUE OF 1. Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1. (a) Prepare the entries required on Kingbird's books to record the sale, annual adjusting entry, and collection of the note's full face value. (For calculation purposes, use 5…
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According to the article, why are interest rates on credit cards higher than interest rates on cars or homes? Choose one or more: A. People who use credit cards take more financial risks than people who buy cars or homes. ⒸB. Credit card issuers are londing money that is unsecured. C. Credit card debts are among the first written off when people file for bankruptcy. O D. Credit card debt typically is for a shorter time period than a loan for a car or home.
Why might it be shortsighted to bluntly refuse lending money or issue credit cards to people without a credit history—such as young students—or to consumers with less-than-stellar credit?
When setting up corporate credit cards, why is it recommended that the parent account not be connected to bank feeds? o The parent credit card account cannot be reconciled if the bank feed is connected to it o QuickBooks Online does not allow parent accounts to have bank feed connections o If the parent account is connected to bank feeds its sub-accounts cannot be connected to the bank o It will create duplicate transactions
Lawyer Lemon, a Jacksonville lawyer, specializes in what he calls credit management law. Thatis, he aids clients with bad credit ratings to improve their status with the major purveyors ofcredit information. If a client's credit rating improves, then the client can get loans that he orshe previously could not have gotten. Lemon's business is a little thin, so he decides toadvertise his services. The text of his ad reads as follows:"Has Bad Credit Got You Down? Come and see Lou Lemon, Attorney at Law, to get a goodcredit ratingFast, faster, fastest credit lawyer in town. Results Guaranteed!Call Lou Lemon today at (904) 343-2929."Which of the following is most correct?O A. If Lemon eliminates the first line of his ad, then the ad will be PROPER.C B. If Lemon eliminates the second line of his ad, then the ad will be PROPER.C. Lou MAY use the ad in brochures, but not on the radio or t.v.D. If Lemon uses the ad as written, he will be SUBJECT TO DISCIPLINE.
Explain the primary goal of maintaining a cash book. Use a case study company of your own choice to demonstrate how such a goal (Your arguments must only relate to the main goal of a cash book) can be attained. Provide examples as approperiate Clearly explain how a cash book can be integrated in the extraction/development of the Trial Balance. Are trade discounts included in the cash book? If not or if yes, explain why Are credit transactions included in the cash book? If not or if yes, explain why Ledgers help to organize accounting information into categories normally known as ‘’classes’’. With examples explain the nature and differences between revenue and capital ledgers Using two revenue and capital ledgers, explain how you will treat them in the trial balance. Explain the treatment of the proprietor’s additional contribution to an already existing business. In addition, explain the underlying accounting principle you will apply in answering this question. Thames Cotton Mills…
Sales Discounts is a revenue account with a credit balance. True False Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.
All of the following are principles of sound credit management of accounts receivable except: establishing a required payment period and communicating it to customers. monitoring collections and preparing regular accounts receivable aging schedules. relaxing credit standards for new customers and offering "one year same as cash" credit terms. more aggressive collection efforts for customers able (but unwilling) to pay. oooo
Credit cards allow people to purchase things that they can almost afford. Things are bought with the feeling that they will soon be paid for. However they also fuel the temptation to buy things that perhaps should have been resisted. This is especially true with the type of credit card that allows a consumer to spend freely for 6 months without being hit by interest. If the account can be zeroed out in that time, the card has given consumer an interest free loan. But it is possible that the consumer has spent up to the limit of the card, say $10,000 and must now pay this off at 24% APR.a) What is the monthly interest rate corresponding to 24% APR? divided by 12.b) How much interest is owed after 1 month on the $10,000? multiplied by the monthly interest rate.
A trial balance does not balance. The owner believes the following mistakes WOULD cause animbalance. Do you agree? (Answer TRUE or FALSE for each statement) A. The owner forgot to record a cash saleB. A credit sale was recorded as a debit to sales and a debit to trade receivablesC. When transferring the bank overdraft from the Cash T account it was entered on thedebit side of the trial balanceD. Rates expense of £500 was debited to rent expenses and credited to cashE. A payment to a supplier of £690 was entered to cash as £690 but to trade payables as£609

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