Walt Disney is the company I selected. The stock price has a downtrend tendency when viewed in aggregate. Disney is always a good investment since it is constantly changing.
The highest stock price during the past year was 201.91; today, it is 175.48. It peaked in the second quarter of the fiscal year 2021. In the past year, there has been a lot of uncertainty. something could have changed the pattern. COVID is the main contributing factor. Due to the economy's decline during COVID, many businesses suffered. Disney opened its Florida parks during the past year, but because to a mandate, they were unable to remain open during the pandemic. Disney has regained its position as a leader in the entertainment industry with the reopening of their parks.
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_________ involves the generation, collection, dissemination, and storage of project information in a timely and effective manner.
a. Scope management
b. Time management
c. Communication management
d. Cost management
Option c is correct. Communication management involves the generation, collection, dissemination, and storage of project information in a timely and effective manner.
The phrase "communication management" refers broadly to the exchange of information between different businesses or inside one business. It focuses on achieving a company's target audiences through the development and execution of various communication strategies. These target audiences can also include staff, in addition to customers, suppliers, and media organizations.
Any business's total health and vitality depend on effective communication management, regardless of whether the audience is internal or external. Businesses can be more successful by developing an understanding of communication management and how it works with marketing.
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left alone, with no government interference, a profit-maximizing firm will produce emissions part 2 a. at the vertical intercept of the mca curve. b. where the msb curve crosses the mca curve. c. at the horizontal intercept of the msb curve. d. at the horizontal intercept of the mca curve. e. at the vertical intercept of the msb curve.
left alone, with no government interference at the vertical intercept of the msb curve. So option E is correct.
What does an economics vertical intercept mean?The amount of product A that can be purchased with a quantity of product B equal to zero is known as the horizontal intercept. The quantity of Product B that can be purchased with Quantity of Product A equal to 0 is the Vertical Intercept. A y-intercept, also known as a vertical intercept, is the location where the graph of a function or relation intersects the y-axis of the coordinate system in analytic geometry using the widely used convention that the horizontal axis represents a variable x and the vertical axis represents a variable y. Therefore, x = 0 is satisfied at these sites.
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assume the united states is an importer of televisions and there are no trade restrictions. u.s. consumers buy 1.1 million televisions per year, of which 500,000 are produced domestically and 600,000 are imported.
The united states is an importer of televisions and there are no trade restrictions on Deadweight loss of 36 million.
As a result of a decrease in world price, CS will increase by 1100000×120 + 0.5×(1400000-1100000)×20 = 132+18 = 150 million
PS decreases by 200000×120+0.5×(500000-200000)×120 = 24+18 = 42 million
TS increases by 150-42 = 108 million
As a result of the tariff, CS will be equal to its previous value
PS will be equal to its previous value
The government will raise revenue of (1100000-500000)×120 = 72 million
Deadweight loss = 0.5×(500000-200000)120 + 0.5(1400000-1100000)×120 = 18+18 = 36 million.
A government is a system or group of humans governing an organized network, generally a kingdom. inside the case of its huge associative definition, the government generally consists of legislature, govt, and judiciary. government is a means via which organizational guidelines are enforced, in addition to a mechanism for figuring out coverage. In many countries, the authorities have a kind of charter, a declaration of its governing standards and philosophy.
A government is a device to control a kingdom or community. even as all sorts of corporations have governance, the time period government is often used extra specifically to refer to the approximately 2 hundred independent country-wide governments and subsidiary companies.
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1.Organizational learning works best when there is integrated thinking and acting at all levels of the organization, according to Peter Senge. True or False
2. A key function of the leaders in a learning organization is to generate an organization wide commitment to change. True or False
3. Codes of conduct not a good way for an organization to attract individuals who might want to work for a business that embraces high standards. True or False
All the three statements given are false.
A learning organization recognizes the benefits of continual support and values employee development. They set up their online training program within a vibrant workplace culture that cultivates untapped potential and values risk-taking and making errors for the benefit of employee development.
One of the key components of a thorough ethics and compliance program is code of conduct training. Code of conduct training is crucial for expressing an organization's vision, core values, and behavior requirements as well as for fostering a positive workplace culture.
In a learning organization, one of the leaders' primary responsibilities is to foster a sense of shared commitment to the status quo. A prerequisite for creating a learning organization is inspiring and motivating employees with a mission or purpose.
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an oil well is subject to a 15% depletion allowance. the gross income for one year is $250,000. the taxable income excluding depletion is $180,000. find the allowable depletion charge for that year.
The plan to end the percentage depletion allowance will damage the small royalty owner, who are undoubtedly the constituents of the committee's members, rather than ending a "subsidy" to "Big Oil."
Many royalty owners who earn less than $400,000 a year will pay more in taxes as a result of eliminating the percentage depletion allowance. As was already established, the average NARO member receives $500 in monthly royalties as a complement to their social security and retirement income. Their yearly taxable income and tax burden would increase if their percentage depletion allowance were removed, which would go against President Biden's promise to safeguard earnings for individuals making under $400,000 annually.
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a corporation issued 4,100 shares of its no par common stock at a cash price of $13 per share. the entry to record this transaction would be:
The common stock at a cash price of $13 per share = $ 53,300.
Common stock :Common stock is a security that represents an ownership interest in a company. Ordinary shareholders elect a board of directors and vote on company policy. This form of equity ownership usually yields higher returns over the long term. Common stock is a form of corporate ownership and a form of security. The terms voting stock and common stock are also commonly used outside the United States.
Working notes :Common stock = 4,100 × $ 13
= $ 53,300
Account titles and explanation Debit Credit
cash $53,300
Common stock $ 53,300
( being shares issued at cash price recorded)
What type of stock is common stock?Common stock is a type of tradable asset or security that represents ownership of a company. If you own a company's common stock, you have the right to vote on company policies, board decisions, and more. Common stock is just one type of stock traded on a public exchange.
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moreover, dunn and bradstreet found that 20 to 25 percent of all outsourcing relationships fail within and nearly half fail within years. this implies that the likelihood of incurring these expenses again, or experiencing costs associated with reinternalizing an outsourced activity, is . another critical financial consideration with outsourcing is the impact on the .
According to research by Dunn & Bradstreet, 20 to 25 percent of all outsourcing relationships end in failure after two years, and almost half do so after five.
This suggests that there is a strong possibility that similar costs will be incurred again, as well as expenditures related to re-internalizing an outsourced operation. The effect on the internal workforce when outsourcing is a crucial financial factor.
This outsourcing model focuses on how the customer and their third-party supplier handle both ownership and accountability during the course of the collaboration.
Because another organization can complete these minor jobs more effectively than the company itself, outsourcing non-core operations can increase productivity and efficiency. Additionally, this approach may boost industry competition, shorten turnaround times, and reduce overall operating costs.
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the past four monthly returns for k and company are 2.50 percent, 1.20 percent, - 0.40 percent, and 0.80 percent. what is the standard deviation of monthly returns? select one: a. 0.01 percent b. 1.20 percent c. 0.69 percent d. 2.07 percent
Standard deviation of monthly returns is 1.20 percent. Therefore, option (b) is the correct asnwer.
What is standard deviation?
The term "standard deviation" (or σ) refers to a measurement of the data's dispersion from the mean. A low standard deviation implies that the data are grouped around the mean, whereas a large standard deviation shows that the data are more dispersed.
In the given question,
x = 2.50 + 1.20 - 0.4 + 0.8 = 4.1
[x - mean (x)]^2 = (2.50 - 1.025)^2 + 0.03 + 2.03 + 0.065
= 4.3
Now,
mean (x) = ∑x/n = 4.1/4 = 1.025
Also,
σ = [tex]\sqrt{\frac{ Summation [x - mean (x)]^2}{n-1} }[/tex]
= [tex]\sqrt{\frac{4.3}{3} }[/tex]
= 1.197
= 1.20 approx.
Therefore, option (b) is the required answer.
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Organizational politics can often result in negative outcomes. These outcomes include which of the following?
a. Request for pay raises
b. increase worker anxiety
c. office violence
d. decrease paid with vacation time
Organizational politics can often produce negative results. One of the effects is increasing worker anxiety.
A political organization is an organization or group that is active or has an interest in or is involved in the political process and in state science, actively plays a role in determining the fate of the nation. Political organizations can include various types of organizations such as advocacy groups that lobby for changes to politicians, think tanks that propose alternative policies, political parties that nominate candidates for general elections, and terrorist groups that use violence to achieve their political goals. In a broader sense, a political organization can also be considered as a political system if it has a complete government system.
Political organizations are part of a unit with an interest in the formation of a social order in a certain area by a legitimate government. This organization can also create some form of structure to follow.
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what can be deduced from portfolio a, which is substantially weighted in stocks, whereas portfolio b is weighted evenly between stocks, bonds, and money market funds?
Answer:
Portfolio A, which is heavily weighted in stocks, is inferred to represent a person who is more risk-averse than Portfolio B.
Explanation:
A general trade-off that underlies almost everything where a return can be generated is risk versus reward. Anytime you invest money in something, there is a chance that you won't receive your money back—that the investment may fail—regardless of how big or small.
You anticipate a return in exchange for taking on that risk that makes up for any possible losses. In general, you should receive more money for holding an investment with a higher risk, and less money with a lower risk.
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billy owns a pet-sitting service. he recently paid a web developer to build a special version of his company website for use on smartphones. customers will now be able to easily place orders for pet sitting on their cell phones. this is an example of
Customers will now be able to easily place orders for pets sitting on their cell phones. this is an example of: what M-commerce encompasses.
Customer Definition: A customer is a natural or legal person who purchases goods or services from another business. Customers matter because they generate revenue. Without them, the business will fail. A customer is a natural or legal person who purchases goods or services from another company.
Customers matter because they generate income. No business can continue to exist without them. Customer service is the support you provide to your customers before and after they purchase and use your product or service, making it easy and enjoyable for your customers to work with you. Providing excellent customer service is essential to retaining customers and growing your business.
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There are three important aspects that affect the ultimate performance of a team. Describe each of these: a) Organizational context b) Team design c) Team culture d) Which (one, two, or three equally) does a leader have the most control over?
Organizational context is the most important aspects that affect the ultimate performance of a team. So option a is the correct option of the given statement.
What are the roles of a team?The management techniques a team uses to control not only the work its members produce but also how individuals and groups communicate, work together, evaluate, and plan are referred to as the team's organization. To accomplish goals in an effective manner, it also depends on the team's capacity to define and understand its roles and to set clear targets. Team members' responses to queries about organization can vary substantially depending on their own views and comprehensions. Sometimes a well-run weekly meeting is all that is needed to reassure team members of the group's structure.
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peterborough trucking just purchased some fixed assets that are classified as 3-year property for macrs. the assets cost $10,600. what is the amount of the depreciation expense in year 3?
The depreciation in the third year of the assets will be $1,569.86
What is depreciation?Depreciation is an accounting technique for spreading out the expense of a tangible item over the course of its useful life. How much of an asset's value has been used is shown through depreciation. It enables businesses to purchase assets over a predetermined length of time and generate income from those assets. Depreciation is a phrase used in accounting to describe two different elements of the same idea: first, the real decline in an asset's fair value over time, such as the annual decline in the value of factory equipment. Accumulated depreciation should be classified as an asset if you have to decide between the two options because that is how the account is shown on the balance sheet.
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free training programs allow manufacturers to: select one: a. explain complex products to retailers. b. build relationships with sales personnel. c. entertain distribution channel members. d. gain feedback regarding customer concerns and questions. e. do all of these things.
Free training programs allow manufacturers to: e. do all of these things.
Manufacturers is the advent or manufacturing of products with the help of gadget, exertions, machines, gear, and chemical or biological processing or formula. it is the essence of secondary quarter of the economic system.
A producer is a person or business enterprise that produces finished goods from uncooked materials by the use of numerous gear, equipment, and procedures, after which sells the goods to customers, wholesalers, distributors, outlets, or to different producers for the manufacturing of extra complicated items.
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Melvin Indecision has difficulty deciding whether to put his savings in Mystic Bank or Four Rivers Bank. Mystic offers 10% interest compounded semiannually. Four Rivers offers 8% interest compounded quarterly. Melvin has $10,000 to invest. He expects to withdraw the money at the end of 4 years.
Calculate interest for each bank and identify which bank gives Melvin the better deal? (Please use the following provided Table.) (Do not round intermediate calculations. Round your answers to the nearest dollar amount.)
Mystic Four Rivers Better deal
Interest $ $ (Click to select)Mystic BankFour Rivers Bank
$4,775 in mystic interest
Interest from Four Rivers $3,728
better offer (Mystic)
How does compound interest work?
By starting early, students can benefit from the "compound interest" magic. The interest you receive is referred to as compound interest. Using simple math, you can see how this works: if you have $100 and it earns 5% interest annually, you will have $105 at the end of the first year. You'll have $110.25 at the conclusion of the second year. You received $5 on the initial $100 deposit in addition to $0.25 on the $5 in interest, for a total of $5. Initially, 25 cents might not seem like much, but it soon adds up.
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one limitation of the net present value approach to investments is that investments with identical net present values may have very different cash flows.
One limitation of the net present value approach to investments is that investments with identical net present values may have very different cash flows is true.
Utilization is the wide variety of gadgets a facility can hold, receive, store, or produce in a length of time. Capacity choices are primarily based totally on technological concerns, now no longer call for forecasts. Price modifications are beneficial for matching the extent of call for to the capability of the facility. Design capability is the theoretical most output of a gadget in a given length below perfect conditions.
For many agencies designing capability may be straightforward, powerful capability is the capability a organization expects to obtain given its cutting-edge working constraints. Fixed fees are fees that don't extrude with the quantity of output produced. This way that the fees stay unchanged even if there may be 0 manufacturing or whilst the commercial enterprise has reached its most manufacturing capability.
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the past five monthly returns for kohls are 4.11 percent, 3.62 percent, −1.68 percent, 9.25 percent, and −2.56 percent. what is the average monthly return? (round your answer to 3 decimal places.)
(4.11+3.62-1.68+9.25-2.56)/5=2.548
The average return is the straightforward mathematical average of several returns produced during a given time period.
What does a monthly return on average mean?The average return is the straightforward mathematical average of several returns produced during a given time period. A security's or portfolio's historical performance can be gauged using the average return. Since compounding is not taken into account, the average return is different from an annualized return.
How is the average monthly return determined?Add back net withdrawals or deduct net deposits during the period from the final sum. After that, divide the outcome by the initial balance at the month's beginning. You may calculate the percentage gain or loss that corresponds to your monthly return by subtracting 1 and multiplying the result by 100.
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The sales philosophy and process that emphasizes a commitment to maintaining customer relationships over the long term and investing in opportunities that are mutually beneficial to all parties is known as ________ selling.
The sales philosophy that emphasizes a commitment to maintaining customer relationships over the long term and investing in opportunities that are mutually beneficial to all parties is known as relationship selling.
What precisely does a business sell?A sale is a deal in which a good or service is exchanged for money. It also covers how to persuade someone or a group to buy something. If you're trying to market a good or service, focus your sales efforts on outlining the advantages for the client.
Do making sales and selling overlap?The word "sale," which also comes in the expressions "for sale" and "on sale," implies a trade at a reduced cost. When employed as a verb, sell means promoting or persuading someone to purchase a certain good or service. It also means giving something away in exchange for money.
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a middle manager at a factory must determine why inventory levels are not meeting the demand for one of its clients. while the manager is able to derive specific ordering and production reports, the manager must also speak with the foreman and the operational employees within the factory to understand more about the production delays.
b) The type of decision most closely representing the characteristics of the given scenario is semi-structured.
Semi-structured type of decision requires a combination of both structured and unstructured approaches. In this case, the middle manager must utilize both quantitative information, such as ordering and production reports, as well as qualitative information, such as speaking with employees, to make an informed decision.
This requires a combination of both structured and unstructured approaches, making it a semi-structured decision. Therefore the correct option is b.
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The complete question is written here:
Type of decision most closely representing the characteristics of the following scenario? a middle manager at a factory must determine why inventory levels are not meeting the demand for one of its clients. while the manager is able to derive specific ordering and production reports, the manager must also speak with the foreman and the operational employees within the factory to understand more about the production delays. a)managerial b) semi-structured c)structured d)unstructured.
a user needs to amend a contract and change prices to reflect new discounts for existing active subscriptions and assets. how should the user achieve this?
Create a Price Book with Price Book Entries to reflect the new prices. Populate the Contract Amendment Price Book ID field with the new Price Book ID to generate Amendment Lines with new prices.
A price book entry is a product with a price listed on the price book. Each price book entry specifies the currency of the price. Standard price book entries are the (standard) standard prices for products and services on the standard price book. An implied contract can be defined as a legal contract between one or two parties.Although this type of contract is legal, it is often not a written contract because it does not involve written agreements between the parties involved and has no form of communication.
Therefore, a contract concluded in words between the parties is called:implied contract. A verbal contract between the parties is called:implied contract. A Price Book Entry object represents the price of a product in a price book. Salesforce Order Management does not use this object, but order products require it, so a dummy price book entry record is created.
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the following relations describe monthly demand and supply for a computer support service catering to small businesses. where q is the number of businesses that need services and p is the monthly fee, in dollars. a. at what average monthly fee would demand equal zero? b. at what average monthly fee would supply equal zero? c. plot the supply and demand curves. d. what is the equilibrium price/output level? e. suppose demand increases and leads to a new demand curve: what is the effect on supply? what are the new equilibrium p and q? f. suppose new suppliers enter the market due to the increase in demand so the new supply curve is q
a) Qd=3000-10P;Qd=0;3000-10P=0;P=$300, b) Qs=-1000 +10P;Qs=0-1000+10P=0;P=$100, c) The supply and demand curve is plotted., d) Equilibrium is where supply meets demand.
What does demand and supply mean?The ability of the market to manufacture an item or service is referred to as supply, but the market's desire to buy the good or service is referred to as demand. The economic concept of supply and demand, which essentially describes the cost and accessibility of commodities, is sometimes seen as a foundational one in the field of economics.
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a) Qd=3000-10P;Qd=0;3000-10P=0;P=$300, b) Qs=-1000 +10P;Qs=0-1000+10P=0;P=$100, c) The supply and demand curve is plotted., d) Equilibrium is where supply meets demand.
What does demand and supply mean?The ability of the market to manufacture an item or service is referred to as supply, but the market's desire to buy the good or service is referred to as demand. The economic concept of supply and demand, which essentially describes the cost and accessibility of commodities, is sometimes seen as a foundational one in the field of economics.
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what are some analyses you could perform that would provide insight into how efficiently your company is collecting cash from customers? are there any kpis that would be appropriate here?
KPIs are corporate metrics connected to performance objectives. By monitoring KPIs, a company can determine whether it is progressing toward its goals and making the appropriate business decisions to do so.
KPIs offer a compass for internal monitoring and direction-changing, but they may also be used to compare an organization's performance to others in the same industry. KPIs offer means to gauge the effectiveness, expense, or result of the many components of business processes.AP KPIs offer means to gauge both the productivity and efficiency of the individuals in charge of managing the AP process as well as the process itself. It's crucial to keep suppliers satisfied while weighing the advantages of borrowing for cash flow.
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which organization publishes guidelines for writing technical procedures that are usually acceptable to agencies governing laboratory operations and accreditation?
which approach to career management prepares workers for moving through clearly defined career paths? companies using this approach want a stable plan for leadership succession.
Structured approach, educates employees for strictly delineated career routes.
Companies that take this method desire to maintain a strong connection to their employees as well as a steady plan for leadership transition.
Career management as well as planning continue beyond your working life. Careful planning equips you to deal with changes in your career and in yourself. Taking chances, and developing new skills, including responding to changes in the work environment including technology are all part of effective career management.
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Which of the following economic principles is generally dominant in industrial society?
A. generalized exchange
B. the market principle
C. redistribution
D. negative reciprocity
E. balanced reciprocity
The market principle of the following economic principles is generally dominant in industrial society.
What distinguishes generalized reciprocity from balanced reciprocity?Contrary to generalized reciprocity, balanced reciprocity is more of a direct exchange in which something is given or exchanged with the expectation that it would be returned in exchange for something else of equal value within a predetermined time frame.
Negative reciprocity: This type of reciprocity arises when one party tries to benefit more from the exchange than the other. One illustration of negative reciprocity is the sale of a desperately needed item at an exorbitant price.
A sort of trade of products and/or services known as "generalized reciprocity" occurs when the giver and the recipient do not maintain an exact ledger of value or specify the quantity or time frame of return. The exchange is anticipated to balance.
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how can a job board benefit your search? it can inform you about the kinds of jobs that are available. it can help you monitor classified ads. it can help you find someone to interview in your chosen field.
A Job board benefit the as search, it can inform the person about the kinds of jobs that are available. Thus, option A is correct.
What is the job board?Employers post job openings on websites known as “job boards” to attract applicants. Those looking for work might utilize job boards to look for fresh openings in their field. Among the popular job board websites are Careerjet, Glassdoor, and Indeed.
A job board is useful for job searching since it may provide information about the many sorts of employment that are available. Job boards are used by businesses and recruiters to list vacant opportunities and search resume databases.
Therefore, option A is correct.
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how would a decrease in the rent for the building affect the price of the coffee beans you buy to make coffee
A reduction in the lease for the structure won't influence the cost of the espresso beans to make espresso, it will just augment the benefit of
the bistro. there is no relationship between's the cost of the espresso beans and the lease of the structure.
Which of the accompanying things could cause an expansion in the stock of espresso?
A few occasions could create such a change: an expansion in livelihoods, an expansion in populace, or an expansion in the cost of tea would each probably build the amount of espresso requested at each cost. Any such change delivers another interest plan.
Which of the accompanying variables can prompt an expansion sought after for espresso at Starbucks?
Assuming pay builds, the interest for Starbucks espresso would likely likewise increment. Starbucks espresso is a superior item and as pay expands, individuals would have the option to stand to buy a greater amount of it. Also, as pay builds, individuals might have more optional pay to spend on things like espresso.
What variables influence espresso costs?
Espresso costs change when market interest associate to make shortage or overflow. The communication between the overall steadiness of interest and the variances of supply are key factors that influence espresso costs. The following element we'll check out, ices in Brazil, additionally influences prospects costs
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if the short-run aggregate supply increases by less than the long-run aggregate supply, then, at the short-run equilibrium group of answer choices gdp will be above potential gdp. gdp will be below potential gdp. aggregate demand will increase. gdp will be equal to potential gdp.
If the short-run aggregate supply increases by less than the longer-run aggregate supply and no other incentives were taken, then the short-run equilibrium at the short-run will be below the potential GDP (B).
Aggregate supply or total output is the total supply of goods and services within an economy at a given overall price. Aggregate supply curve shows the relationship between the price level and the quantity of output of an economy.
Short-run aggregate supply represents the change in price level when the quantity of output fluctuates and a firm is unable to generate more capital or introducing new technology to fulfill the order at the same price. However, this condition is unlikely to affect the long-run. Long-run aggregate suplly is not affected by the price level and is only driven by improvements in productivity and efficiency.
Now let's focus on our case. When the short-run aggregate supply increase and shifted upward, the short-run equilibrium will move. This condition happens because the aggregate demand stays and unmoved. An increase in short-run aggregate supply means that the price level of the product at a particular output level increases.
However the aggregate demand stays means that the market is unwilling to spend more money for buying the same level of outputs. The market will choose to tolerate the raised price and lower their quantity demanded. This condition will lead to lower GDP than the potential GDP at the equilibrium point.
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A monopolistically competitive firm is operating in the short run at the optimal level of output and is earning negative economic profits. Which expression must be TRUE for this firm? A) ATC> P>MR-MC B) ATC P > MR = MC. C) ATC > P = MR = MC. D) ATC> P>MR> MC.
Option (c), A monopolistically competitive company produces at its highest capacity while suffering a short-term loss in economic earnings. The statement "ATC > P = MR = MC" must be TRUE for this company.
What happens to a business that is in the short term monopolistically competitive?By producing the quantity where marginal revenue equals marginal cost, a monopolistically competitive firm maximizes profits or minimizes losses in the short run. If the average total cost is less than the competition, the company will be profitable.
Monopolistic enterprises have a downward slanted demand curve as a result of their function as price takers.
It is a sign that the price is insufficient to cover the average total costs when a monopolistic competitive firm performs at its peak in the short term even though it is losing money.
If the firm is to operate at its best level, price must equal marginal revenue and marginal cost. However, the business is losing money because the price does not cover costs.
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The journal entry required to record the purchase of $20,000 of U.S. Treasury bonds at their face amount on May 17 plus accrued interest for 45 days would include a _____.
a. debit to Interest Receivable
b. debit to Cash
c. credit to Investments
d. None of these are correct.
Option (a), A debit to Interest Receivable would be included in the journal entry needed to document the May 17 purchase of $20,000 worth of U.S. Treasury bonds at face value plus accumulated interest for 45 days.
What is the exact amount of interest due?Interest receivable is the total amount of earned interest that has not yet been paid out in cash. Many companies choose not to record this amount because they see it as being irrelevant.
As an example, let's assume a customer purchases $1,000 worth of equipment on credit on June 1 and agrees to pay 1% in interest each month on the outstanding balance. If the balance is not paid by July 1st, you will have accrued interest of $10.
If a receivable gets debited, what does that mean?The fundamental rule of accounting states that credit represents liabilities (something you owe money for or have a legal obligation to own) and debit denotes assets (things you own) (something you owe). Since you will soon receive money that you will own and profit from, accounts receivable are always shown as assets on a balance sheet.
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