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2 years ago

Which source of credit is most likely to result in the greatest loss if you

Business

2 answers:

uranmaximum [27]2 years ago

7 0

Answer:

The correct answer is A. Title Lender

Olenka [21]2 years ago

3 0

The defaulting on a payday loan is the source of credit that is most likely to result in the greatest loss if one defaults on payments.

<h3>What is payday loan?</h3>

A payday loan refers to a short-term borrowing whereby a lender will extend high-interest credit based on your income.

The reason that payday loan is most likely to result in the greatest loss is because of the option of extending the high-interest credit.

Therefore, the Option B is correct.

You might be interested in

#20 Employers include __________ plan coverage in fringe benefit programs to retain high-quality employees and ensure productivi

harina [27]

Answer:

Group health

Explanation:

As a company it's the duty of owner and management to take care of their employees health
It's difficult to run individual healt programmes hence companies run group health programs

8 0

3 years ago

Assume that a financial asset gives its owner the following cash flows which are invested using the compound interest method: ye

VMariaS [17]

Answer:

$114,218.

Explanation:

Year 0, cash outflow = $15,041

Year 1, cash inflow = $44,780

Year 2, cash inflow = $15,784

Year 3, cash inflow = $52,390

Year 4, cash inflow = $13,458

R = 6%

Value of the asset in year 3 = -15,041*(1+6%)^3 + 44,780*(1+6%)^2 + 15,784*(1+6%) + 52,390 + 13,458/(1+6%)

Value of the asset in year 3 = -15,041*1.191016 + 44,780*1.1236 + 15,784*1.06 + 52,390 + 13,458/1.06

Value of the asset in year 3 = -17,914.07 + 50,314.81 + 16,731.04 + 52,390 + 12,696.23

Value of the asset in year 3 = $114,218.01

5 0

3 years ago

In Year 8, Seda Corp. acquired 6,000 shares of its $1 par value common stock at $36 per share. During Year 9, Seda issued 3,000

Elena L [17]

Answer: Please see answer in explanation column

Explanation:

Using the cost method, treasury stock is credited for cost of the shares when it is reissued, while Cash is debited for amount received. Also, additional paid-in capital from treasury stock will be credited to show the difference.

journal entry to record the issuance of 3000 shares in year 9

Date Account Debit Credit

Year 9 Cash (3,000x $50) $150,000

Treasury stock (3,000x$36) $108,000

Additional paid-in capital- treasury stock $42,000

( $150,000 - 108,000)

7 0

4 years ago

The following information applies to the questions displayed belowWarnerwoods Company uses a perpetual inventory system. It ente

Vadim26 [7]

Answer:

Gross profit under LIFO = $40,570 - $26,340 = $14,230

Gross profit under FIFO = $40,570 - $24,520 = $16,050

Gross profit under average cost = $40,570 - $26,238.46 = $14,331.54

Gross profit under specific ID = $40,570 - $26,070 = $14,500

Explanation:

I divided the purchases and sales:

Mar. 1 Beginning 130 units $51.60 per unit

Mar. 5 Purchase 240 units $56.60 per unit

Mar. 18 Purchase 100 units $61.60 per unit

Mar. 25 Purchase 180 units $63.60 per unit

Totals 650 units, $37,900

Mar. 9 Sales 290 units $86.60 per unit

Mar. 29 Sales 160 units a $96.60 per unit

Totals 450 units. $40,570

COGS under LIFO:

(240 x $56.60) + (50 x $51.60) = $16,164

160 x $63.60 = $10,176

total = $26,340

COGS under FIFO:

(160 x $56.60) + (130 x $51.60) = $15,764

(110 x $56.60) + (50 x $61.60) = $8,756

total = $24,520

COGS under average cost:

($37,900 / 650) x (290 + 160) = $26,238.46

COGS under specific ID:

(80 x $51.60 ) + (210 x $56.60) = $16,014

(60 x $61.60) + (100 x $63.60) = $10,056

total = $26,070

3 0

4 years ago

GreenLawn Co. provides landscaping services to clients. On May 1, a customer paid GreenLawn $60,000 for 6-months services in adv

devlian [24]

Answer:

See answer below

Explanation:

Journal entry will be as follows.

Debit Cash Account $60,000

Credit Payables/Service Prepayment Account $60,000.

As service is being rendered on a monthly basis (monthly income = $\frac{60,000}{6} = 10,000$ ), the company will make the following journal entry.

Debit Payables/Service Prepayment Account $10,000

Credit Revenue $10,000.

3 0

3 years ago