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2 years ago

Which statement describes a main advantage of using cash over other forms of payment

1 answer:

Klio2033 [76]2 years ago

8 0

The main advantage of using cash over other forms of payment is that its eliminates the possibility of overspending.

<h3>How does cash eliminates overspending?</h3>

While doing a physical transaction, there will not be a situation of overspending because the person can not purchase more than the cash value he/she has on him/her.

Hence, the main advantage of using cash over other forms of payment is that its eliminates the possibility of overspending.

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TunaCo purchases 25% of Stanley, Inc. on January 1 of the current year for $500,000. This acquisition gives TunaCo the ability t

Sidana [21]

Answer:

$512,500

Explanation:

Data provided in the question:

Percentage of Stanley, Inc purchased by TunaCo = 25%

Amount for which the TunaCo purchased = $500,000

Assets on Stanley = $160,000

Liabilities of Stanley = $400,000

Useful life of building = 15 years

Book value of the building = $100,000

Fair market value = $400,000

Net income reported by Stanley = $140,000

Dividend paid = $70,000

Now,

Annual depreciation = [Fair value - Book value] ÷ Useful life

= [ $400,000 - $100,000] ÷ 15

= 20,000

Now,

Total account balance of Stanley = Net income reported by Stanley - Annual depreciation - Dividend paid

= $140,000 - $20,000 - $70,000

= $50,000

Account balance of TunaCo = Initial investment + 25% of account balance of Stanley

= $500,000 + [ 25% of $50,000]

= $500,000 + $12,500

= $512,500

5 0

4 years ago

A city council designates funds in the enterprise fund for future equipment replacement. The enterprise fund should report this

Ivanshal [37]

Answer: An unrestricted component of net position

Explanation:

Fund balances can be committed, restricted, assigned, and unassigned. The designation of city council has no right to restrict funds.

A restriction of fund can only be imposed through legislation, constitution, or external resource providers, and not by the designation by the city council. In this case, funds would be unrestricted.

6 0

4 years ago

Last year Electric Autos had sales of $165 million and assets at the start of the year of $280 million. If its return on start-o

ohaa [14]

Answer: 16.9697%

Explanation:

Sales = $165 million

Assets in beginning of year = $280 million

Assets return on start of the year = 10%

$Return\ on\ Net\ Assets =\frac{Operating\ Profit}{Net\ Assets}\times 100$

$\frac{Return\ on\ Net\ Assets\times Net\ Assets}{100} =Operating\ Profit$

$\frac{10\times 280}{100} =Operating\ Profit$

Operating Profit = 28

$Operating\ Profit\ Margin = \frac{Operating\ Profit}{Sales\ revenue}$

$Operating\ Profit\ Margin = \frac{28}{165}\times 100$

= 16.9697%

8 0

4 years ago

56. Anne LLC purchased computer equipment (5-year property) on August 29 with a basis of $30,000 and used the half-year conventi

klasskru [66]

Answer:

B. $1,728

Explanation:

Data given in the question

Number of computer equipment purchased = $30,000

So, by considering the above information the maximum depreciation expense is

= Number of computer equipment purchased × depreciation rate under MACRS for 5 years property × half year basis

= $30,000 × 11.52% × 0.5

= $1,728

Refer to the MACRS table to find out the depreciation rate

3 0

3 years ago

According to the Truth in Lending Act, which of the following is the bank NOT obligated to inform you of? A.APY B.Interest calcu

Lesechka [4]

According to the Truth in Lending Act, which of the following is the bank NOT obligated to inform you of?

Answer: Out of all the options presented above the one that represents what banks are not obligated to inform you of is answer choice B) Interest calculating method. The reason being that the TILA does not tell financial institutions how much interest they may charge or whether they must grant a consumer a loan.

I hope it helps, Regards.

8 0

4 years ago

Read 2 more answers