What is meant by the net realizable value of accounts receivable?
What will be an ideal response?
Net realizable value of accounts receivable represents the amount of receivables a company estimates it will actually collect.
Net realizable value = Accounts receivable - Allowance for doubtful accounts
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Runners Feet, a shoe store, orders one hundred pair of athletic shoes from Speedster Inc. Absent a contrary agreement between the parties, title will pass to Runners Feet when
A. the parties sign the contract. B. the goods exist and are identified. C. Speedster physically delivers the goods. D. Runners pays for the goods.
Consider the estimated aggregate demand for a company’s ski product line for the upcoming year in the following table. Calculate the additional number of workers required to meet the production level for the month of January using the chase production strategy. The average number of hours required to produce a pair of skis is 8 hr, and the number of worker hours per month is 160. The current workforce is 100. The beginning inventory for January is zero.
A. 100
B. 200
C. 300
D. 400
Which of the following statements is correct?
A. A major disadvantage of a regular partnership or a corporation as a form of business is the fact that they do not offer their owners limited liability, whereas proprietorships do. B. An advantage of the corporate form for many businesses is the fact that the corporate tax rate always exceeds the personal tax rate, which is the rate at which proprietorships and partnerships are taxed. C. There are more partnerships and proprietorships than corporations in the United States, but corporations produce more goods and services than do other forms of business. D. Because partnerships and proprietorships enjoy the benefits of limited liability, easy transferability of ownership interest, unlimited life, and favorable tax status relative to the situation for corporations, most large businesses choose to be set up as partnerships and proprietorships. E. Because lawyers have the incorporation process so automated (e.g., word processors for drawing up the necessary papers), it is less expensive to form a corporation than to form a proprietorship or partnership.
Members of limited liability companiesare shielded from personal liability in many situations
Indicate whether the statement is true or false