A firm's age of accounts receivable:
A) measures the average time between credit-based sales and the collection of payments for those sales.
B) is likely to be greater for firms within the same industry with more generous credit terms.
C) is in part a function of the type of industry in which the firm operates.
D) All of the above.
D
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Jacquin Corporation reports its income from investments under the equity method and recognized income of $15,000 from its investment in Trapper Company during the current year. Trapper declared no dividends during the current year. On Jacquin's statement of cash flows the $15,000 would
a. be shown as cash from investing activities. b. be shown as an addition to net income in the reconciliation of net income to cash from operations. c. be shown as a deduction from net income in the reconciliation of net income to cash from operations. d. not be shown.
What happens if the name of the indorsee or payee is misspelled in an indorsement?
A) The instrument becomes nonnegotiable. B) The instrument can be indorsed with the misspelled name. C) The instrument has to be remade to be valid. D) The instrument cannot be subsequently indorsed.
Division X makes a part with the following characteristics: Production capacity 25,000unitsSelling price to outside customers$18 Variable cost per unit$11 Fixed costs, total$100,000 Division Y of the same company would like to purchase 10,000 units each period from Division X. Division Y now purchases the part from an outside supplier at a price of $17 each. Suppose Division X has ample excess capacity to handle all of Division Y's needs without any increase in fixed costs and without cutting into sales to outside customers. If Division X refuses to accept the $17 price internally and Division Y continues to buy from the outside supplier, the company as a whole will be:
A. worse off by $20,000 each period. B. worse off by $70,000 each period. C. worse off by $60,000 each period. D. better off by $60,000 each period. E. better off by $10,000 each period.
The level of defects a customer considers completely unacceptable is referred to as the?
a. PPTD b. LTPD c. AQL d. PQL