Which would a firm prefer: A net collection float or a net disbursement float? Why?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 72% (11 reviews)
I would rather say that a net disbursement float will be preferred by a firm because in simple se...View the full answer
Answered By
Ajay Negi
Hi, I've completed my degree in engineering (Information Technology) from an NIT. Currently working as a software engineer. Wish to impart quality education to the future generation.
5.00+
2+ Reviews
10+ Question Solved
Related Book For
Essentials of Corporate Finance
ISBN: 978-1260013955
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Question Posted:
Students also viewed these Cost Accounting questions
-
Collection and disbursement floats which would a firm prefer: a net collection float or a net disbursement float? Why?
-
Depreciation Given the choice, would a firm prefer to use MACRS depreciation or straight-line depreciation? Why?
-
Under what conditions would a firm prefer the following? a. A fixed-rate term loan from a bank b. A floating-rate term loan, with the rate tied to the banks prime rate
-
Marty owns an auto body repair shop. The business has no real value without him and the building is pretty much a mess after being full of paint fumes for all those years but the land is worth...
-
If a projectile is fired with an initial velocity at an angle of inclination from the horizontal, then its trajectory, neglecting air resistance, is the parabola (a) Suppose the projectile is fired...
-
Book and liquidation value The balance sheet for Ghalib Industries is as follows. Additional information with respect to the firm is available: (1) Preferred stock can be liquidated at book value....
-
How does a positioning strategy help an organization differentiate itself from competitors? LO.1
-
1. Consider the costs/harms and benefits of disclosing non- GAAP financial numbers. What value, if any, do you see in the use of non- GAAP metrics? 2. What responsibilities do auditors currently have...
-
Compute the margin of safety in dollars and as a ratio. Margin of safety Margin of safety ratio Question 1 In the month of June, Jose Hebert's Beauty Salon gave 4,200 haircuts, shampoos, and...
-
Refer back to the beginning of this chapter to the excerpt from a Los Angeles Times article about Reed Slatkin's fraud. The article insinuates that the FBI and IRS's raiding of Slatkin's office...
-
Williamson, Inc., manufactures quality replacement parts for the auto industry. The company uses a standard costing system and isolates variances as soon as possible. The purchasing manager is...
-
Discuss how REA diagrams might be useful to auditors in understanding a client's business processes. What if the client hasn't prepared them in advance? What basic steps would the auditor perform to...
-
hockey players, parents, sky divers, scuba divers, pilots, and just about anyone with a passion for life. In fact, GoPro estimates that more than 1 billion minutes of GoPro video are viewed each...
-
The following information is available for two different types of businesses for the 2011 accounting period. Dixon Consulting is a service business that provides consulting services to small...
-
Marino Basket Company had a \(\$ 6,200\) beginning balance in its Merchandise Inventory account. The following information regarding Marino's purchases and sales of inventory during its 2011...
-
On March 6, 2011, Bob's Imports purchased merchandise from Watches Inc. with a list price of \(\$ 31,000\), terms \(2 / 10, n / 45\). On March 10, Bob's returned merchandise to Watches Inc. for...
-
The following events apply to Tops Gift Shop for 2012, its first year of operation: 1. Acquired \(\$ 45,000\) cash from the issue of common stock. 2. Issued common stock to Kayla Taylor, one of the...
-
Indicate whether each of the following costs is a product cost or a period (selling and administrative) cost. a. Transportation-in. b. Insurance on the office building. c. Office supplies. d. Costs...
-
In the diagram, LM is the perpendicular bisector of PN. What segment lengths are equal? P 9 L 9x-3 M 4x + 1 N 6x
-
Transform the while loop from the previous exercise into an equivalent for loop (make sure it produces the same output).
-
Rise Above This, Inc., has an average collection period of 39 days. Its average daily investment in receivables is $47,500. What are annual credit sales? What is the receivables turnover?
-
Bismark Co. is in the process of considering a change in its terms of sale. The current policy is cash only; the new policy will involve one period's credit. Sales are 40,000 units per period at a...
-
The Johnson Company sells 3,300 pairs of running shoes per month at a cash price of $90 per pair. The firm is considering a new policy that involves 30 days' credit and an increase in price to $91.84...
-
Problem 12.6A (Algo) Liquidation of a partnership LO P5 Kendra, Cogley, and Mel share income and loss in a 3.21 ratio (in ratio form: Kendra, 3/6: Cogley, 2/6; and Mel, 1/6), The partners have...
-
Melody Property Limited owns a right to use land together with a building from 2000 to 2046, and the carrying amount of the property was $5 million with a revaluation surplus of $2 million at the end...
-
Famas Llamas has a weighted average cost of capital of 9.1 percent. The companys cost of equity is 12.6 percent, and its cost of debt is 7.2 percent. The tax rate is 25 percent. What is the companys...
Study smarter with the SolutionInn App