Mr. Hill, who runs a key-chain manufacturing unit, buys raw materials from his supplier during the first week of every month. The supplier's policy states that all payments need to be cleared within 50 days of buying the materials. This schedule ensures that Mr. Hill gets an extended period to make payments thus controlling when the payment is made. Which of the following strategies is Mr. Hill using to control cash outflow?
A. Gaming the payment process
B. Timing the purchase
C. Offering trade discount
D. Taking a consignment
Answer: B
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In a period of inflation, which of the following combinations of accounting methods will yield the lowest amount of current earnings?
a. LIFO and double-declining-balance method b. FIFO and straight-line method c. LIFO and straight-line method d. FIFO and double-declining-balance method
In the PAF cost model, PAF stands for ______.
A. prevention, appraisal, failure B. planning, action, feedback C. prevent, act, feedback D. planning, appraisal, feedback
Explain how privacy can be legally protected. Summarize the Electronic Communications Privacy Act of 1986 (ECPA). Discuss the "intrusion into seclusion" concept.
What will be an ideal response?
Use the following information to answer the following questions. The following totals for the month of April were taken from the payroll register of Magnum Company. Salaries $12,000 FICA taxes withheld 550 Income taxes withheld 2,500 Medical insurance deductions 450 Federal Unemployment Taxes 32 State Unemployment Taxes 216 The journal entry to record the monthly payroll on April 30 would include
a A) credit to Salaries Payable for $8,500. B) debit to Salaries Expense for $8,500. C) debit to Salaries Payable for $8,500. D) debit to Salaries Payable for $8,252.