Answer:
The correct answer is D
Explanation:
Compensating balance is the balance which is to be minimum amount that is to maintained or kept in the bank account, so that could be used to offset the cost incurred by the bank for setting up the loan.
It is that balance which is not available for the company to use and might be needed to disclose in the notes of the borrower in the financial statements.
So, it is a specific kind of collateral, allow bank to monitor payment practice of firms and require to have a minimum amount that borrower need to keep in the checking account.
Answer:
b) $1,900
Explanation:
The computation of the total liabilities is shown below:
= Accounts Payable + Deferred revenue
= $700 + $1,200
= $1,900
The other items are related to the expenses which are shown in the income statement and current assets which are shown on the balance sheet
Therefore, only two items are shown in the total liabilities.
Answer:
False
Explanation:
Variable costs are part of direct expenses incurred in the production of goods meant for sales. Variable costs have a direct and proportionate relationship with the output level. An increase in output level increases variable costs. Examples of variable costs are packaging and raw materials.
The contribution margin is the dollar amount available from the sale of each unit to cater for fixed costs and profits. It is calculated by subtracting variable costs from the selling price. The contribution margin is used in determining the break-even point and the output level required to achieve desired profits.
D. He is trying to improve the employees speaking skills so there is less conflict
Frances must stand by his ethical standards and defer his plans to market the product.
Explanation:
Frances is stranded amidst classic case of an ethical dilemma. The ethical dilemma is an ethical perspective which puts a person in a state of to do or not. This is common and everyone undergoes through this phase for more than once in his/her lifetime.
The dilemma arises due to the substantiative profits that he can earn from marketing the product and his ethical concerns that the product is harmful for a section of the user. He needs to stick to his ethical standards and put the products to more rigorous tests and research. This would enable him to market his products in the future with some twitches and upholding his ethical concerns too.
