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1 year ago

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

Business

1 answer:

GREYUIT [131]1 year 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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Stanley deposits $1,000 into a savings account that pays 1% interest per year. At the end of the first year, he's earned $10 in

77julia77 [94]

Answer:

$1000

$1010

Explanation:

The formula for determining simple interest = principal x time x interest rate

The formula for determining compound interest = future value - amount invested

FV = P (1 + r)^n

FV = Future value

P = Present value

R = interest rate

N = number of years

1000 X 0.01 X 1 = $10

Given the figures in the question, the simple interest each year would be $10 based on $1000

But the compound interest in year 2 = 1000 x (1.01)^2 = 1020.10

1020.10 - 1000 = 20.1

compound interest in year 2 = 20.1 - 10 = 10.1

1010 x 0.01 x 1 = 10.1

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2 years ago

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Nana76 [90]

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3 years ago

Read 2 more answers

A food manufacturer reports the following for two of its divisions for a recent year.

Over [174]

Answer and Explanation:

1. Return on investment is

= Operating Income ÷ Average invested Assets

here, average invested assets is

= (Invested assets, beginning + Invested assets, ending) ÷ 2

For Beverage Division

= $349 ÷ (($2,662 + $2,593) ÷ 2)

= $349 ÷ $2,628

= 13.28%

For Cheese Division

= $634 ÷ (($4,455 + $4,400) ÷ 2)

= $634 ÷ $4,428

= 14.32%

2. Profit margin = (Operating income ÷ sales) × 100

For Beverage Division

= ($349 ÷ $2,681) × 100

= 13.02%

For Cheese Division

= ($634 ÷ $3,925) × 100

= 16.15%

3. Investment turnover = Sales ÷ Average Operating Assets

For Beverage Division

= $2,681 ÷ (($2,662 + $2,593) ÷ 2)

= $2,681 ÷ $2,628

= 1.02 times

For Cheese Division, it would be

= $3,925 ÷ (($4,455 + $4,400) ÷ 2)

= $3,925 ÷ $4,428

= 0.89 times

6 0

3 years ago

Becton Labs, Inc., produces various chemical compounds for industrial use. One compound, called Fludex, is prepared using an ela

shtirl [24]

Answer:

direct materials price variance = actual quantity x (actual price - standard price)

direct materials price variance = 7,820 x ($5.30 - $15) = 7,820 x (-$9.70) = -$75,854 favorable

direct materials usage variance = standard price x (actual usage - standard usage)

direct materials usage variance = $15 x (7,820 - 9,660) = -$27,600 favorable

direct labor price variance = actual hours x (actual rate - standard rate)

direct labor price variance = 2,460 x ($12.30 - $15) = 2,460 x (-$2.70) = -$6,642 favorable

direct labor usage (efficiency) variance = standard rate x (actual hours - standard hours)

direct labor usage (efficiency) variance = $15 x (2,460 - 3,680) = $15 x (-1,220) = -$18,300 favorable

4 0

2 years ago

A student deposits $1,642 in the bank that pays 6.2% interest yearly (using yearly compounding). After 5 years he withdraws the

tamaranim1 [39]

Answer:

the perpetuity will pay the student 166.36 dollar per years

Explanation:

First, we solve for the amount of the original investment after 5 years:

$Principal \: (1+ r)^{time} = Amount$

Principal 1,642.00

time 5.00

rate 0.06200

$1642 \: (1+ 0.062)^{5} = Amount$

Amount 2,218.17

<u>Then, this goes into a perpetual annuity at 7.5%</u>

2,218.17 x 0.075 = 166.3630983 = 166.36

the perpetuity will pay the student 166.36 dollar per years

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