Why are cash discounts given, who benefits by these discounts, and what are the benefits of those discounts?
What will be an ideal response?
Cash discounts are given to encourage prompt payment of accounts and to avoid excess overdue accounts. Both the buyer and seller will benefit. The buyer benefits by paying a lower price for the goods. The seller benefits by collecting cash sooner to have to pay obligations. It also benefits the seller by reducing collection costs.
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A written agreement containing the various provisions under which a partnership is to operate is known as a partnership agreement
a. True b. False Indicate whether the statement is true or false
Which of the following items will not appear on a cash budget?
A. Expected cash collections B. Financing activities C. Expected cash payments D. Expected credit sales
Chuck Olson, age 16, buys a used car from Bobby Duncan Used Cars Center on September 15, 2006. Olson agrees to pay $200 a month for 12 months. A month after the purchase, Olson is involved in an accident that wrecks the car. He immediately calls Duncan Cars and informs them that he is disaffirming the contract. According to traditional common laws, which of the following is most likely to be true?
A. Olson can ask Duncan to pay for the damages as he hasn't made the full payment for the car. B. Olson can successfully press charges and force Duncan to take care of the damages caused to the car. C. Olson has to pay for the damages and then return the car to Duncan. D. Olson does not have a duty to place Duncan in status quo ante.
Which of the payroll fraud scheme listed below tend to generate the largest losses?
a. commission b. falsified hours and salary c. ghost employee d. false worker compensation