Which of the following will increase a company's current liabilities?Note: You may select more than one answer. Single click the box with the question mark to produce a check mark for a correctanswer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question markwill be automatically graded as incorrect.A company purchases a new truck with cash.A company receives cash from taking out a long-term loan.? A company collects half of its accounts receivable balance.? A company purchases inventory on credit.? A company purchases new manufacturing equipment with cash.

Current liabilities are what a company owes and needs to pay within a year. When a company purchases…

Answered: Which of the following will increase a…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter9: Accounting For Receivables

Section: Chapter Questions

Problem 11MC: Which of the following best represents a positive product of a lower number of days sales in...

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Which of the following statements about the company's financial operations and financial decisions is FALSE? If your company overdraws its checking account, the Global Community Bank will automatically issue your company a 1-year loan in an amount sufficient to bring your ending cash balance up to zero. The interest rate charged on overdraft loans is always 2% above whatever interest rate your company would otherwise pay on a 1-year loan from the GCB (for example, if your company's B credit rating entitled your company to a 1-year loan carrying a 6.5% interest rate, then the interest rate on a 1-year overdraft loan would be 8.5%). If the company needs to secure additional capital, it can take out loans with 1-year, 5-year. and/or 10-year terms from the Global Community Bank and/or it can issue new shares of common stock. The company's banking arrangement with the Global Community Bank calls for the company to be paid interest on any positive cash balance in the company checking…
The following is a statement showing the financial status of the comapany at any given time A. Trading account B. Profit & Loss statement C. Balance Sheet D. Cash Book 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.
What does a firm need to do to improve liquidity? O A. Stock up on inventory in order to never run out of stock O B. Extend credit terms to customers in order to gain more sales O C. Pay all bills and payables when due O D. Speed up collection of accounts receivable from customers
One or more of the totals are incorrect. Pay close attention to whether you should be entering a balance or calculating a total for this column. Please check any calculations carefully. Remember to complete all answer boxes, enter a "0" for any zero balances and to enter a cash deficiency with a minus sign or parentheses. Please Correct it Hex Company requires a minimum cash balance of $4,100. When the company expects a cash deficiency, it borrows the exact amount required on the first of the month. Expected excess cash is used repay any amounts owed. Interest owed from the previous month's principal balance. s paid on the first of the month at 11% per year. The company has already completed the budgeting process for the first quarter for cash receipts and cash payments for all expenses except interest. (Click the icon to view the completed budget information.) Hex does not have any outstanding debt on January 1. Complete the cash budget for the first quarter for Hex Company. Round…
Which of the following demonstrates that a company is managing its receivables well? a.The company has cash to pay its bills. b.The company is cash poor. c.The company is losing interest that could be earned by investing. d.The company has many short term loans with high interest.
Which of the following transactions would result in an increase in capital employed? A. Paying a trade payable in cash B. Writing off a bad debt C. Purchasing on credit D. Repaying a loan E. Selling inventory at a profit F. Increasing the bank overdraft to purchase a non - current asset
Suppose that a lottery winner deposits $12 million in cash into her transactions account at the Bank of America (B of A). Assume a reserve requirement of 10 percent and no excess reserves in the banking system prior to this deposit. Instructions: Round your responses to two decimal places. a. Use the following T-account to show how her deposit initially affects the balance sheet at B of A. Step 1 - Bank of America Assets (in millions) Liabilities (in millions) Reserves Deposits Required Excess Loans Total assets Total liabilities b. Has the money supply been changed by her deposit? (Click to select) c. Use the following T-account to show the changes at B of A after the bank fully uses its new lending capacity. Step 2 - Bank of America Assets (in millions) Liabilities (in millions)
Which one of the following statements is true if a company's collection period for accounts receivable is unacceptably long? a.The company may need to borrow to acquire operating cash. b.The company should expand operations with its excess cash. c.Cash flows from operations may be higher than expected for the company's sales. d.The company may offer trade discounts to lengthen the collection period.
"Factoring" occurs when a business sells some of its accounts receivable to another insitution so it can receive cash immediately instead of having to wait until the receivables can be collected. True or False
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How would each of the following items be reported on the balance sheet? a. Accrued vacation pay. b. Estimated taxes payable. c. Service warranties on appliance sales. d. Bank overdraft. e. Employee payroll deductions unremitted. f. Unpaid bonus to officers. g. Deposit received from customer to guarantee performance of a contract. h. Sales taxes payable. i. Gift certificates sold to customers but not yet redeemed. j. Premium offers outstanding. k. Discount on notes payable. l. Personal injury claim pending. m. Current maturities of long-term debts to be paid from current assets. n. Cash dividends declared but unpaid. o. Dividends in arrears on preferred stock. p. Loans from officers.

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