What is meant by spontaneous financing?
What will be an ideal response?
Answer: Certain types of financing typically increase "spontaneously" with sales and are "free" in the sense that no interest expense is incurred. Examples: Inventory typically increases with sales and accounts payable increase with inventory. Accounts payable are interest-free loans provided by the firm's vendors to finance inventory purchases. Also, as sales increase, we would expect payroll, and therefore accrued salaries and wages payable to increase. Accrued wages and salaries are interest-free loans from employees to their employers.
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"Shortly after the Reigle-Neal Act was passed, many interstate banks divided their operations so that their branches reported to the state subsidiaries rather than to the main holding company."
Answer the following statement(s) true (T) or false (F)
The rule of caveat emptor meant that if there was no privity between a producer and an injured consumer, the consumer had no case against the producer
a. True b. False Indicate whether the statement is true or false
A ________ inventory system will always give updated balances for ________.
A. perpetual; Goods Available for Sale B. periodic; Inventory C. periodic; Cost of Goods Sold D. perpetual; Cost of Goods Sold
Ganesh India Shop purchased merchandise from India with a list price of $110,000 less trade discounts of 30/10/5. What was the net price of the order?