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1 year ago

Where do financial institutions get the funds that they lend to customers?

1 answer:

3 0

Banks typically generate income by borrowing funds from depositors and paying them back at a predetermined interest rate. By charging the borrowers a higher interest rate and making money off the interest rate spread, the banks will lend the money to borrowers.

Banks obtain savings from individuals and companies (savers) and use these resources to issue loans to others who need money (borrowers). One of the biggest funding expenses for banks is the interest they must pay on the money they receive from savers.

Finance companies make money by selling securities, primarily commercial paper, to other companies, including banks, in the money market. They then lend the money to people or corporations at an interest rate that is higher than what they pay on their securities.

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LO 8.5Identify several causes of a favorable material quantity variance.

yan [13]

Answer:

Possible causes of material quantity variance:

1. The use of sub-standard material

2. The use of unskilled labour

3. Wastage of material

Explanation:

Material quantity variance is the difference between standard quantity and actual quantity used multiplied by standard price. The use of sub-standard material reduces the quality of output thereby resulting to unfavorable material quantity variance. The use of unskilled labour also leads to unfavorable material quantity variance. Wastage of material due to low quality of inputs also results to unfavorable material quantity variance.

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4 years ago

1. Which advantage is not enjoyed by the owner of a sole proprietorship?

gayaneshka [121]

The correct answer to 1 is the ability to easily raise financial capital.

A sole proprietor is limited to the cash that they personally have, so this is a disadvantage when they need additional capital for the business.

The correct answer to 2 is that their personal property can be used to pay debts.

A partnership is personally responsible for the debts of the company. If the company owes money and cannot pay it, the partners that own the business are personally responsible.

The correct answer to 3 is the shareholders.

The shareholders are the owners of the corporation. They vote for a board of directors who in turn oversee the operation of the corporation.

8 0

3 years ago

Have led to drastic changes in the ability to gather, analyze, and access

kakasveta [241]

Answer: advanced in technology :)

Explanation:

6 0

3 years ago

Read 2 more answers

As of December 31, Bayer, Inc., agrees to provide a bonus of $50,000 to its employees (to be equally shared by all). The bonus w

mafiozo [28]

Answer:

Dec. 31

Dr Bonus expense $50,000

Cr Bonus payable $50,000

Explanation:

Preparation of the December 31 adjusting entry for Bayer.

Based on the information given we were told that they agreed to provide a bonus of the amount of $50,000 to its employees which will be equally shared by all of them in which The bonus will be paid in January which means that the journal entry will be:

Dec. 31

Dr Bonus expense $50,000

Cr Bonus payable $50,000

8 0

3 years ago

the montaneros file a joint return in 2022 and reported $1,435,700 ordinary taxable income for regular tax purposes and had $158

Debora [2.8K]

Their tentative minimum tax is : AMT Amount = A * (B – C) – D

A = 15%

B = The individual's adjustable tax income.

C = $40,000, the AMT exemption amount.

D = Allowable non-refundable tax credits.

TMT = 15% × (14,35,700 - 40,000) - 158,200

TMT = 51,155

<h3 /><h3>What is a provisional tax?</h3>

The least tax that a person may deduct from an estate tax is known as the tentative tax. After all exemptions and deductions to reduce tax liability have been used, the estimated tax is calculated. Placing an estate's total worth in the appropriate estate tax category yields a rough estimate of the tax.

<h3>What distinguishes the AMT from the tentative minimum tax (TMT)?</h3>

The difference between the two sums is utilized to generate a tax using a rate schedule after the two sums have been computed. The discrepancy produces the so-called preliminary minimum tax (TMT).

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5 0

1 year ago