Accounts receivable (A/R) is one of a series of accounting
transactions dealing with the billing of customers who owe
money to a person, company or organization for goods and
services that have been provided to the customer. In most
business entities this is typically done by generating an
invoice and mailing or electronically delivering it to the
customer, who in turn must pay it within an established
timeframe called credit or payment terms.
An example of a common payment term is Net 30, meaning
payment is due in the amount of the invoice 30 days from
the date of invoice. Other common payment terms include Net
45 and Net 60 but could in reality be for any time period
agreed upon by the vendor and the customer.
The account receivable is the money owned by a company from
customers for providing goods or services on credit. A sale
is generally considered as account receivable once the
invoice is sent to the customer.
A company maintains a margin of safety of 25% on its
current sales and earns a profit of Rs. 30 lakhs per annum.
If the company has a profit volume (P/V) ratio of 40%, its
current sales amount to A. Rs. 200 lakhs;
B. Rs. 300 lakhs;
C. Rs. 325 lakhs;
D. None of the above.
Two candles of equal lengths and of different thickness are
there. The thicker one will last of six hours. The thinner
2 hours less than the thicker one. Ramesh light the two
candles at the same time. When he went to bed he saw the
thicker one is twice the length of the thinner one. For how
long did Ramesh lit two candles ?please describe full