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NEW QUESTION: 1
An entity average of inventory US $4,000 in sales per day and is paid on an average within 30 days of the sale. After they receive their invoke, 55% of the customers pay by check, while the remaining 45% pay by credit card. Approximately how much would the entity show in accounts receivable on its balance sheet on any given date?
A. US $54,000
B. US $48,000
C. US $4,000
D. US $120,000
Answer: D
Explanation:
If sales are US $400 per day, and customers pay in 30 days. 30 days of sales are outstanding, or US $120,000. Whether customers pay by credit card or cash collection requires 30 days.
NEW QUESTION: 2
Ordinary shareholders with preemptive rights are entitled to:
A. Purchase any additional shares sold by the entity.
B. Vote first at annual meetings.
C. Purchase any additional bonds sold by the entity.
D. Gain control of the entity in a proxy fight.
Answer: A
Explanation:
Preemptive rights protect ordinary shareholders, proportional ownership interests from dilution in value. A secondary purpose is to maintain the shareholders' control of the entity. Accordingly, the preemptive right, whether granted by statute or by the corporate charter, grants ordinary shareholders the power to acquire on a pro rata basis any additional ordinary shares sold by the entity. Preemptive rights also apply to debt convertible into ordinary shares.
NEW QUESTION: 3
A. Option B
B. Option C
C. Option D
D. Option A
Answer: C
Explanation:
A prospect is a temporary contact that is created by sales representative.
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