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2 years ago

Is interest on loan an expense or a liability....Please help

Business

1 answer:

GREYUIT [131]2 years ago

3 0

Answer:

expense

explanation :

when we're about loan we are talking about a business or a person who is taking a loan. in this case the person or the firm pay interest on the loan.

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In long-run equilibrium with trade, losses from import competition will force some firms to ______________, increasing demand fo

MrMuchimi

Answer:

The correct answer is option b.

Explanation:

In an open economy, domestic firms have to face competition from the foreign producers. If firms face losses in the long run, because of import competition, these firms will leave the industry.

As the number of domestic firms get reduced, the demand curve of the other firms will become flatter. This happens because of the foreign firms that bring in a large variety of goods in the domestic market.

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3 years ago

If a population consists of the positive even numbers through 30 aqnd if A= (2,6,12,24), what is A?

blondinia [14]

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3 years ago

The December 31, Year 1, financial statements of Edwards Co. (a privately held company) were available to be issued on March 1,

Leno4ka [110]

Because of those issued transaction, Edwards Co. must provide the disclosure about the stock issuance in the footnotes included with the December 31, Year 1 financial statements

A Footnote is a section for financial disclosure that shows how the numbers in the statement of financial position and cash flow statements were determined.

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Hence, because of those issued transaction, Edwards Co. must provide the disclosure about the stock issuance in the footnotes included with the December 31, Year 1 financial statements

Read more about Footnote

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2 years ago

The premium on a three-year insurance policy expiring on December 31, 20x11, was paid in total on January 1, 20x9. The original

bezimeni [28]

Answer:

b. The same as it would have been if the original payment had been debited initially to an expense account

Explanation:

We can use an example to explain this:

original journal entry to record a 3 year insurance policy on January 1 is:

Dr Prepaid insurance 3,600

Cr Cash 3,600

Adjusting entry on December 31

Dr Insurance expense 1,200

Cr Prepaid insurance 1,200

balance of prepaid insurance = $3,600 - $1,200 = $2,400

If instead of recording prepaid insurance on January 1, you recorded insurance expense:

Dr Insurance expense 3,600

Cr Cash 3,600

Adjusting entry on December 31

Dr Prepaid insurance 2,400

Cr Insurance expense 2,400

balance of prepaid insurance = $2,400

5 0

3 years ago

Bruin, Inc., has identified the following two mutually exclusive projects: Year Cash Flow (A) Cash Flow (B) 0 –$ 37,500 –$ 37,50

sp2606 [1]

Answer:

Year Cash Flow (A) Cash Flow (B)

0 -37,500 -37,500

1 17,300 5,700

2 16,200 12,900

3 13,800 16,300

4 7,600 27,500

1) Using an excel spreadsheet and the IRR function:

IRR project A = 20%

IRR project B = 19%

2) Using the IRR decision rule, Bruin should choose project A.

3) In this case, since the length of the projects is only 4 years, then there should be no problem with the IRR decision rule, but for projects with longer time lengths, the discounts rates might vary and the best option is to use the modified internal rate of return (MIRR). But in this case the NPV of project B is higher, then Bruin should probably project B because it has a higher NPV. The NPV is always more important then the IRR.

4) Again using an excel spreadsheet and the NPV function:

NPV project A = $6,331

NPV project B = $8,139

5) first we must subtract cash flows from A by the cash flows from B:

1 $11,600

2 $3,300

3 -$2,500

4 -$19,900

then we calculate the IRR = 16%

Bruin should be indifferent between the two projects at a 16% discount rate. That means that at discount rates above 16%, you should choose project A, but at discount rates below 16%, you should choose project B

6 0

3 years ago

Is interest on loan an expense or a liability....Please help​

Is interest on loan an expense or a liability....Please help