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1 year ago

Failure by a promissory notes maker to pay the amount due at maturity is known as_________.

Business

1 answer:

Andreas93 [3]1 year ago

5 0

Failure by a promissory notes maker to pay the amount due at maturity is known as Dishonoring a note.

A dishonored note is a that promissory note which has not been paid by a debtor in a given reasonable amount of time. It causes the creditor to write off the recorded revenue as a bad debt.

With the help of promissory note, a buyer can make a short-term commitment to pay any supplier for merchandise within the stated time period and also at a certain interest rate.

In order to properly record a dishonored note in the financial journal of the organization one must first decide whether he is expecting to collect payment eventually or not.

A bill is always considered as dishonored either by non-acceptance or by non-payment of the bill.

To know more about dishonored note here:

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Selected sales and operating data for three divisions of different structural engineering firms aregiven as follows: Division A

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Answer and Explanation:

The computation is shown below:

Return on investment = Margin × Turnover

Now

= (Net operating income ÷Sales) × (Sales ÷ Average operating assets)

Division A = ($414,000 ÷ $6,900,000) × ($6,900,000 ÷ $1,725,000)

= 6% × 4

= 24.00%

Division B = ($1,090,000 ÷ $10,900,000) × ($10,900,000 ÷ $5,450,000)

= 10% × 2

= 20.00%

Division C = ($325,000 ÷ $10,000,000) × ($10,000,000 ÷ $2,500,000)

= 3.25 × 4

= 13.00%

Residual Income = Net operating income - (Minimum required rate of return × Average operating assets)

Division A = $414,000 - (19% × $1,725,000)

= $414,000 - $327,750

= $86,250

Division B = $1,090,000 - (20% × $5,450,000)

= $1,090,000 - $1,090,000

= $0

Division C = $325,000 - (16% × $2,500,000)

= $325,000 - $400,000

= ($75,000)

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2 years ago

After graduation, you face a choice. you can work for a multinational consulting firm and earn a starting salary (benefits inclu

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Answer: Accounting profit= $44,500

Economic Profit = $4,150

Explanation: Accounting profit are the profit earned by subtracting explicit cost from the total revenue earned.

$Accounting profit = Revenue - Explicit cost$

Economic profit are profits lefts out after subtracting implicit (opportunity) cost and explicit ( monetary) costs. It is given by

$Economic profit = Revenue - Explicit cost - Implicit Cost$

In this case, the explicit cost include rental cost, office supplies, office staff and telephone expenses.

While, implicit cost include the 7% interest foregone on the $5000 savings and the salary foregone ($40,000) by choosing to startup a business than take up the job.

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3 years ago

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likoan [24]

The special tax was called Jizya.

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2 years ago

If firms in a perfectly competitive market are experiencing economic losses, then as time passes firms ________ and the market _

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Answer:

The correct choice is D

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2 years ago

When janice went to work as a hair stylist in rick's beauty shop, she entered into an agreement with rick whereby if she left sh

ASHA 777 [7]

The question is incomplete, here is the complete question which I previously came across;

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It is hard to decide if a judge will implement a non-competition agreement. While the privileged insights of a business are important, the law additionally puts value to a person's opportunity to seek after other work. To be enforceable Courts more often than not require that a contract not to compete be sensible. In California, non-competes are adequately unlawful except if you are selling a business. Different states will implement a few provisions, as a rule the trade secret protection, however not the work limitations.

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