User Account

All Pages

Customers in the future

Assignment Help Business Management
Reference no: EM132040136

Please assist me in understanding this question

As a common practice, Rova Inc. mostly collects upfront payments for goods that will be delivered to customers in the future. Unearned revenues contribute significantly to the company's current liabilities.

Commentator A: The advance cash received from customers can be used to finance the company's operations, and the corresponding liabilities that are recorded will appear as sales in future financial statements. Therefore, this practice is beneficial to Rova Inc. and should be continued.

?Which of the following statements weakens commentator A's argument??

  • ?Rova Inc.'s cash flow statement shows that the company does not have enough cash to scale up its operations in the next year.
  • ?Rova Inc.'s long-term liabilities are not offset by its current assets.
  • ?Rova Inc.'s ability to deliver exactly as per its commitments to its customers is frequently impacted by its unreliable suppliers.
  • ?A majority of the orders received by Rova Inc. from its customers are for customized products.

Reference no: EM132040136

Questions Cloud

Institutions that often were considered special : Initially, thrifts were depository institutions that often were considered "special." Why were they viewed this way?
What is the tax basis for the equipment : Calculate the total operating cash flow for each of the three years counting the initial investment and the resale of the old equipment after year 3.
Non-public personal information of customers : If the company made a mistake that non-public personal information of customers have been obtained by anyone with access to the Internet.
What will be the resulting percentage change : Variable cost per unit $186 Units sold 406 Fixed costs $7,872 Interest expense 18,803 Based on the data above, what will be the resulting percentage change?
Customers in the future : As a common practice, Rova Inc. mostly collects upfront payments for goods that will be delivered to customers in the future.
Complete an aging schedule for the fourth quarter : Calculate the days sales outstanding for the fourth quarter (October-December, assuming 30 days in each month).
Decisions in inventory management area : What are the key differences between manufacturing and service organisations in regards to decisions in "inventory management" area?
Calculate the cash flow from assets : For 2012, calculate the cash flow from assets, cash flow to creditors, and cash flow to stockholders.
Discretionary employee benefits : What some views about whether discretionary employee benefits should be an entitlement or something earned based on job performance.

Reviews

Write a Review

Business Management Questions & Answers

  Split the cost

Split the Cost Suppose your roommate suggests that you both vote yes or no. If you both vote yes than you both buy the machine and pay $25 each. If either of you votes no then the machine is not bought.

  Which industry globalization drivers are the calmest

Which industry globalization drivers are the calmest to measure and which are the most difficult? What is the foundation for your assertions?

  Incorporate the marathon branding approach

Write a Rhetorical Analysis of tis MC Hammers Talk, answering one or all of the three questions as you incorporate the Marathon Branding Approach

  Explain branding debate

Explain Branding Debate- Take a position on one of the subsequent statements a) all brands have a limited life as indicated by the product life cycle as well as will slip or disappear

  Develop a production plan for the monthly forecast

Stevens Company manufactures automobile tires. They use a chase strategy and rely on subcontracting when necessary to meet demand. Develop a production plan for the following monthly forecast: 80, 90, 70, 80, 90, 100.

  List three specific techniques for developing a warm

How does profiling the audience help a business communicator prepare a message?- List three specific techniques for developing a warm, friendly, and conversational tone in business messages.

  Determine the short-run production function

a. Determine the short-run production function if capital is fixed at 240 units.

  Orthodontists feel like wild weekend bikers

After all, if Harley Davidson can build a brand that makes 55 year old orthodontists feel like wild weekend bikers - the road's wide open.

  Human resource managementcase studyyou are an hr leader or

human resource managementcase studyyou are an hr leader or director for an organization that employees 500 individuals

  Discuss the role of encryption in ensuring confidentiality

Discuss the role of encryption in ensuring confidentiality; use a popular encryption to make your point if needed.

  Describe the informal structure of the organization

Describe the informal structure of the organization. How does work actually get done? How does the organization deal with the differentiation-integration issue?

  How would you act in this scenario

How would you act in this scenario? How could you change the process for addressing this problem? Are there some different outcomes that could have served each

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd