All categories

1 year ago

When won’t the CGA apply?

Business

1 answer:

mestny [16]1 year ago

8 0

CGA apply wont apply to commercial products.

CGA which is full meaning is Consumer Guarantees Act can be defined as the act which sole roles and responsibility is to ensures that consumers are payback their money in a situation were the consumer both goods or product that are damaged or faulty or in a situation were the faulty goods a consumer purchase are not replace with a good one.

The reason why Consumer Guarantees Act apply wont apply to commercial products is because commercial product are goods that companies purchase for their own use .

Therefore CGA apply wont apply to commercial products.

Learn more about Consumer Guarantees Act here:brainly.com/question/27317480

#SPJ1

You might be interested in

Assume that on September 30, 2017, Flyair, an international airline based in Germany, purchased a Jumbo aircraft at a cost o

Murrr4er [49]

Answer: Highest income=The units of Production method of depreciation with $3,412,500

Lowest income=double declining depreciation method with $18,000,000

Explanation:

a) Using Straight line depreciation method

(Cost of value - Salvage value)/ Useful life =(45,000,000 -6,000,000)/5 =$7,800,000

b)Using Units-of-production depreciation method

Depreciation Expense = (Cost – Salvage value) x (Number of units produced / Life in number of units)

=45,000,000 -6,000,000) x (350,000/4,000,000)= $3,412,500

b)Using Double-declining-balance depreciation method

Depreciation Expense = Beginning book value x Rate of depreciation

Rate of depreciation = 100% / useful life x 2= 100/5 x2 = 40 %

Depreciation expense = 40 % x $45,000,000 =$18,000,000

or you use this method directly= 45,000,000/5 x 2= $18,000,000

Now the highest income will come from the depreciation with least expense and from our calculation, the depreciation method with the least expense is from The units of Production method with $3,412,500

In the same vein, the lowest income will come from the most depreciation expense, therefore the most depreciation expense is from the double declining method with $18,000,000

6 0

2 years ago

Prior, Inc. has decided to raise additional capital by issuing $175,000 face value of bonds with a coupon rate of 10%. In discus

bogdanovich [222]

Answer:

cash 150,000 debit

discount on BP 47,500 debit

bonds payable 175,000 credit

warrants 22,500 credit

If the warrants were undetachabel they wouln't be able to be transfer in a secondary market thus, they will not be traded the accounting will only the 150,000 as bonds an dthe diffrence with the 175,000 as discount.

cash 150,000 debit

discount on BP 25,000 debit

bonds payables 175,000 credit

Explanation:

136,000 bonds 136,000/160,000 = 0.85

24,000 warrant 24,000 /160,000 = 0.15

160,000

bonds 150,000 x 0.85 = 127,500

discount on bonds: 175,000 - 127,500 = 47,500

warrants 150,000 x 0.15 = 22,500

8 0

2 years ago

Mondale Winery depreciates its equipment using the group method. The cost of equipment purchased in 2021 totaled $565,000. The e

beks73 [17]

Answer:

$90,400

Explanation:

Mondale Winery depreciates it's equipment by making use of the group method.

The cost of equipment that was purchased in 2021 totaled $565,000

The residual value of the equipment was $54,000

The group depreciation rate is 16%

= 16/100

= 0.16

Therefore, the annual depreciation can be calculated as follows

Annual depreciation= Cost of equipment × Group depreciation rate

= $565,000×0.16

= $90,400

Hence the annual depreciation for the group is $90,400

4 0

2 years ago

Tiptoe shoes had annual revenues of $201,000, expenses of $111,700, and dividends of $24,400 during the current year. the retain

Andreyy89

Entry to close the income summary account at the end of the year:

At the time of closing the Income Summary account, the Income Summary account is debited and Retained earnings account is credit with the amount of Net Income. Net Income can be calculated as follows:

Net income = Revenue – Expenses = 201,000-111,700 = $89,300

Hence the entry to close the income summary account at the end of the year shall be as follows;

Income Summary Debit $89,300

Retained earnings Credit $89,300

4 0

2 years ago

The price quotations of Treasury bonds in the Wall Street Journal show an ask price of 104.25 and a bid price of 104.125.

Andreas93 [3]

As a seller we would receive $1,041.25

Solution:

You may receive the bid price of the dealer, $104.125\%$ of $1,000, or $1,041.25

Prices of treasury bonds are expressed as par value amounts.

The quote price of 104:25 means that the bond is priced at $(104 + \frac{25}{100})\%= 104.25\%$ of the par value.

Therefore, if the debt is $1,000, the dollar values to be charged by the borrower should be $1,000\times104.25\% = \$1,041.25$

5 0

2 years ago