Answer:
False
Explanation:
When value of money is evaluated over time, the interest rate is put into consideration.
Present value of future cash flows of a loan is an estimate of how much will be paid on a certain amount given a specific interest rate over a period of time.
So if there is a fall in interest rate it means that less of the original amount is being discounted, so present value increases.
On the other hand when interest rate increases more of original amount is discounted. So the present value reduces.
In the given scenario when you receive a payment of $300 one year from now and during the year the interest rate rises, this reduces the present value of your future payment
Answer:
$180 decrease
Explanation:
Note that the question is the net change in cash provided by investments, thus, since purchasing goods on credit and paying credit purchases do not qualify as investments, only the equity issued to pay for the purchase of the new facility should be considered.
Therefore, cash decreased by $180.
The answer is a. Monopoly
In a monopoly systems, all resources will fall under the control of one specific owner.
This will create no competition in the markets, making little room for innovation and maintaining the quality of the products, therefore inefficiency in resources usage
NB : monopoly never works and almost never used in developed countries
Answer: the answer is Privacy
Explanation:
They are limiting your rights of privacy by them being able to access your emails and such if that makes sense.
Answer:
The entry should be:
c. Debit Cash $45,731.25; credit Interest Revenue $731.25; credit Notes Receivable $45,000
Explanation:
Jasper makes a cash loan to Clayborn Co.. This is a Notes Receivable of Jasper.
The amount of the loan is $45,000
Tern of the loan is 90-day and interest rate is 6.5%
The interest amount Jasper receives on maturity date:
$45,000 x 6.5% x 90/360 = $731.25
The entry should be:
Debit Cash $45,731.25
Credit Interest Revenue $731.25
Credit Notes Receivable $45,000
