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2 years ago

Capitalization of interest is adding accrued

1 answer:

6 0

It is true that capitalization of interest is adding accrued interest to the principal balance, so that the interest-bearing principal balance of the loan increases.

<h3>What is interest capitalization?</h3>

This is when an unpaid interest is rolled over with the principal amount, which increase the overall amount to be paid. It is the inclusion of an unpaid interest to the principal balance of the loan taken.

Hence, Capitalization of interest is adding accrued interest to the principal balance, so that the interest-bearing principal balance of the loan increases.

Learn more about interest capitalization here: brainly.com/question/417585

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The economy begins in equilibrium at point E, representing the real interest rate r1 at which saving S1 equals desired investmen

Ad libitum [116K]

Answer:

A lower equilibrium point due to decreased investment, decreased real interest rate and decreased level of savings

Explanation:

The economic graph that is referred to in the question in referred to as the IS-LM curve which depicts the intersection of the IS (Investment-savings curve) with the LM (liquidity preference-money supply) curve. This intersection determines thr equilibrium between real interest rates and the output/consumption at that level of interest rate. The IS curve is downward sloping while the LM curve is upward sloping.

The tax law change makes the investment less attractive which will cause the IS curve to pull inwards (i.e a shift to the left). This shift to the left essentially reduces the level of investment thereby lowering the demand for money for investment. This reduction in demand causes the real interest to decrease. At this decreased interest level, there is a decrease in the the level of savings (because of the lower return that is available on money saved). Therefore the impact will result in a new lower equilibrium at which the real interest rate and the levels of saving and investment will be lower than the original equilibrium level.

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3 years ago

Timothy Company has invested $1,000,000 in a plant to make vending machines. The target operating income desired from the plant

Ne4ueva [31]

Answer:

11%

Explanation:

Calculation to determine the markup percentage as a percentage of cost for Timothy Company

First step is to calculate the Sales revenue

Sales revenue = 1,500 units × $1,000

Sales revenue = $1,500,000

Now let calculate the Markup percentage

Markup percentage = $150,000 / ($1,500,000 - $150,000)

Markup percentage = $150,000/1,350,000

Markup percentage= 11%

Therefore Markup percentage is 11%

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3 years ago

Therapeutic services pays less than most other careers

RideAnS [48]

The answer to this question would be ; true

5 0

2 years ago

Read 2 more answers

describe what ETL (Extraction, Transformation, and Load) stands for. Solomon (2015) classified ETL technologies into four catego

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Answer:

Scheduled data integration, or ETL, is an important aspect of warehousing because it consolidates data from multiple sources and transforms it into a useful format

Explanation:

ETL are three separate but crucial functions combined into a single programming tool that helps in preparing data and in the management of databases. Extract, Transform, Load each denotes a process in the movement of data from its source to a data storage system, often referred to as a data warehouse

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3 years ago

In Waterway Company, Treasury Stock increased $20400 from a cash purchase, and Retained Earnings increased $80200 as a result of

Verizon [17]

Answer:

$59,900

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Explanation:

<u>Cash flow from Financing activities</u>

Particulars Amount

Cash paid for treasury stock $20,400

Cash dividends <u>$39,500</u>

Net cash used by financing activities <u>$59,900</u>

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3 years ago