Answer: Option C
Explanation: Primary market refers to the market in which the securities are sold to the general public for the first time by the companies. In simple words, the initial public offering process takes place in such markets. The securities could be of any type whether debt, equity or preference.
The market in which existing securities are bough and sold is called secondary market. And the commission is paid in both secondary and primary market.
Hence the correct option is C.
Answer:
Debt ratio = 56%
Times Interest earned = 5 times
Explanation:
<em>The debt ratio is the proportion of the total assets amount that is financed by debt . It is a measure of financial risk. A company with a high debt ratio (in excess of 50%) is considered financially risky. That is may not be able to meet its short term financial obligations</em>
Debt ratio = Debt/Total assets × 100
= (140,000/250,000)× 100
= 56%
Times interest earned is the number of times the earning before interest and taxes (EBIT) can pay the interest obligation. It is a measure of financial risk. For example, a company with a ratio of less than 3 times might be considered as potentially unable to meets its loan obligation
Times interest earned = Earnings before interest and tax (EBIT)/Interest expense
= 75,000/15,000
= 5 times.
Answer:
b) cash 1000
account receivable 1000
Explanation:
Since in the question it is given that the company received payment from one of his customers on August 5 for the service performed on July 21
So under the accrual basis accounting, the journal entry is as follows
Cash Dr $1,000
To Account receivable $1,000
(Being the payment received is recorded)
While debiting the cash and credited the account receivable
Answer:
The correct answer is option C.
Explanation:
n economics, we know that the basic problem is the scarcity of resources. These resources have alternative uses. We have unlimited wants and needs. Whenever we decide how to use scarce resources to satisfy our wants and needs, we face a trade-off.
We cannot satisfy all our wants and needs, if we want to satisfy one we have to sacrifice the other. Anytime a person decides to take any action, he/she faces trade-offs. Every individual regardless of his wealth and income is faced with making trade-offs.
Answer:
A liquidated damages clause
Explanation:
A liquidated damages clause or provision is included in an agreement specifying an amount of money that establishes the damages that will be recovered by one party in the event of another party's breach to the contract.
Liquidated damages are agreed upon by parties to the contract at the time of signing the agreement.
In this scenario, the provision of $1,000 in the agreement constitutes a liquidated damages clause.
