Southern New Hampshire University
Module Four Homework
Please answer the following questions in paragraph form. Create in a Word document and upload.
1)What is receivables float? Receivables float is the time between when a pavment is issued and when it is received
For example, receivables float is the time between someone writes a check and mails and when the company receives the payment. 2) What is payables float? Payables float, like receivables float, is the time between when a check is written and when it clears the bank. 3) Name three ways to shorten the receivables cycle. One way to shorten the receivables cycle is mobile deposit, which is when you can take a picture of a check and it will begin the depositing process. ACH, automatic clearinghouse, is a bank to bank transfer, where the funds will clear within 1-2 business days. For example, many companies use ACH transfer to pay employees. The third way to shorten the receivables cycle is to ask for payment upfront or cash on delivery. (Bragg 2011) 4)Give one example of receivables fraud. An example of receivables fraud is when an item is shipped to a fake address and an invoice is not created. This will normally take two people within a company, one from accounting and one from shipping. (Bragg, 2011)
disadvantages of each method. Two diverse types of inventory valuation methods are FIFO and LIFO. FIFO stands for first in first out, which simply means that items first received are first issued. (Bragg, 2011) FIFO is an
extremely easy method to understand, easiest to keep records of and it is widely accepted. To many people it is common sense. The oldest product is sold first. LIFO stands for last in, first out. LIFO offers higher costs of goods sold and there are many tax advantages, but it is complicated to
record of.
6) A controller must consider many factors to assist in the determination of capital asset
expenditures. Why is this planning important? Name two different accounting methods that might be used in the valuation of the expenditure. Discuss the advantages and disadvantages of both methods.Capital expenditures are normally expensive and can have short term and long. term effects on the finances of a company.
References
Bragg, S. M. (2011). The Controllertts Function (4th ed.). Wiley Professional, Reference & Trade (Wiley K&L). https://mbsdirect.vitalsource.com/books/ff7fi111fi0014