Firms That Are Temporarily Short of Cash and Unable to Borrow

question 11

Multiple Choice

Firms that are temporarily short of cash and unable to borrow from usual sources can convert accounts receivable into cash by

• A)assigning accounts receivable and forwarding amounts collected to the lending institution.
• B)pledging its accounts receivable to the lending agency as collateral for a loan.
• C)factoring the accounts receivable to a bank or financing company to obtain cash.
• D)all of the above.
• E)none of the above.

Grasp the concept and calculation of direct materials cost in Work in Process inventory.

Calculate actual direct labor-hours worked based on provided data.

Learn how to determine the cost of goods manufactured in a job-order costing system.

Understand the calculation of the predetermined overhead rate in a manufacturing environment.

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Definitions:

Substantially Impair

To significantly weaken or reduce the ability, value, or function of something.

Reject

To refuse to accept, submit to, believe, or make use of something.

Perfect Tender Rule

Requirement that the seller deliver the goods in conformity with the contract, down to the last detail.

Local

Pertaining to or occurring in a particular area, community, or jurisdiction, not widespread or general.