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Monetary principle

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15y ago

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How can a rapid increase in sales produce a negative cash flow?

the rapid increase in sales produce a negative cash flow because your funds gets blockedfor eg earlier your sale was 10,000 units now your sale increased to 20,000 units to support the sale of 20,000 units you need to invest more money such as in inventory, debtors Most people are accustomed to going to the store and paying by cash or a credit card and these types of transactions always result in positive cash flow to the business. Imagine however that you are a manufacturer. While you might get an order (which is of course a sale), you now have to produce that order which means any material suppliers might theoretically need to get paid before you get paid from your customer.


FIFO method Inventory 20 units at 20 sold 10 units purchased 30 units at 21 sold 20 units purchased 10 units at 22 what is the cost of the merchandise sold?

The cost of the merchandise sold is not important!!! :p


What is meant by the term equivalent units of production when the weighted-average method is used?

Is the number of units transferred to the next department added to the equivalent units (product of number of partially completed units and % completed of thoses units with respect to the processing in the department) in the departments ending work in process inventory.


What is the difference between revenue and turnover?

Revenue is the amount of money that comes in from sales, so "sales" and "revenue" are the same. Turnover is the quantity of stock sold over an indicated period, expressed either in monetary value or number of units.


Breakeven point in units?

The Formula of Breakeven point (in units)= Fixed Cost / Contribution per unit

Related Questions

Expression for units of miles per hour?

The units are m/h.


What are monetary transactions?

Most transactions recorded by the system are monetary transactions, where the units involved make or receive payments, or incur liabilities or receive assets denominated in units of currency. Transactions that do not involve the exchange of cash, or assets or liabilities denominated in units of currency, are non-monetary transactions. Intra-unit transactions are normally non-monetary transactions. Non-monetary transactions involving more than one institutional unit occur among transactions in products (barter of products), distributive transactions (remuneration in kind, transfers in kind, etc.) and other transactions (barter of non-produced non-financial assets). The system records all transactions in monetary terms. The values to be recorded for non-monetary transactions must therefore be measured indirectly or otherwise estimated. hope this helps?


Which expression represents the area?

The area is measured in square units.


Which expression can be used to find the area of a triangle with height 7 units and base x units?

(7*x)/2 = area in square units


What is an expression of distance in SI units?

Distance is typically expressed in meters (m) in the International System of Units (SI).


Why is divisibility an important characteristic of money?

Divisibility is an important characteristic of money because it allows for transactions of varying sizes, enabling consumers to make purchases of different values without difficulty. This feature ensures that money can be easily broken down into smaller units, facilitating trade and commerce at all levels. Additionally, divisibility enhances the efficiency of the economy by allowing for precise pricing and the ability to make change, thereby supporting both small and large transactions seamlessly.


Do denominations matter in digital money?

Denominations can matter in digital money in terms of usability and practicality. Denominations help facilitate transactions by providing standard units of value that people are familiar with. However, from a technological standpoint, digital money can be infinitely divisible, so denominations may not play as significant a role as they do with physical currency.


What is writing units of each variable in a real life problem?

variable expression


What are the units of expression for the density of a gas?

The official SI unit is kg/m3.


What is 700 square units in radical expression in simplest form?

10√7


Which one is an expression of distance in SI units?

The SI unit of distance is the meter (m).


Why is it important to use system of units?

It is so that, in most transactions, both parties involved in the transaction know exactly what is being traded.