1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
brilliants [131]
3 years ago
12

When using ________ financing, the company incurs a legal obligation to repay the amount borrowed. debt equity retained earnings

commitment?
Business
1 answer:
Leni [432]3 years ago
6 0
When using Debt financing, the company incurs a legal obligation to repay the amount borrowed. Retained earnings assign to the percentage of net acquiring not to paid out as dividends, but retained by the company to be reinvested in its core business, or to pay a debt.
You might be interested in
A. Calculate the total estimated bad debts on the below information.
Rudik [331]

Answer:

The answer is below;

Explanation:

b. Allowance for Doubtful Accounts     Dr.$4,000

   Bad Debts                                           Cr.$4,000

c. Bad Debt Expense   Dr.$5,000

   Account Receivable Cr.$5,000

d. 1)Account  Receivable Dr.$5,000

   Bad Debt Expense   Cr.$5,000

2)Cash      Dr.$5,000

Account Receivable Cr.$,5000

5 0
3 years ago
10. Calculate the future value of $2000 in a. 5 years at an interest rate of 5% per year. b. 10 years at an interest rate of 5%
timofeeve [1]

Answer and Explanation:

The computation is shown below;

Given that,

Principal = P = $2000

As we know that

Future value (FV) = P × (1 + R)^n

here,

R = Rate of interest,

N = no of years

Now

A) N = 5, R = 5% = 0.05

FV = $2,000 × (1.05)^5

= $2,553

The Interest earned is

= $2,553 - $2,000

= $553

B) N = 10, R = 5% = 0.05

FV = $2,000 × (1.05)^10

= $3,258

The Interest earned is

= $3,258 - $2,000

= $1,258

C) N = 5, R = 10% = 0.10

FV = $2,000 × (1.10)^5

= $3,221

D) Option A

As in the part B the time period is 10 years as compared with the part A i.e. 5 years having the interest rate same

Also the cumulative interest would be greather than double as compared with part A

4 0
3 years ago
A​ check-processing center uses exponential smoothing to forecast the number of incoming checks each month. The number of checks
aliina [53]

Answer:

A. Forecast for July = 42.

B. Forecast for August = 42.45

C. Because of seasonality in the banking industry.

Explanation:

A. Forecast for July = Forecast for June + Smoothing constant x (Forecasting error)

                                 = 42 + 0.15 (42-42) = 42

B. Forecast for August = Forecast for July + 0.15 (Forecasting error)

                                      = 42 + 0.15 (45-42) = 42.45

C. Because there is a great deal of seasonality in the processing requirements of banking industry, this forecasting method (exponential smoothing) might not be appropriate for this situation.

5 0
3 years ago
Raymond owns an Accidental Death and Dismemberment Policy with a principal sum of $50,000, and a capital sum of $25,000. After o
schepotkina [342]

Answer:

He will get nothing from the Accidental Policy.

Explanation:

  • Raymond owns an Accidental policy but he Dies from Coronary artery disease. according to insurance companies policy, he will get nothing when he is dead by any means other than by accident.
  • Insurance companies have their own regulations and policy.
  • The insurance company is liable to pay for the incident for which the insurance is taken.

6 0
3 years ago
Banko Inc. manufactures sporting goods. The following information applies to a machine purchased on January 1, Year 1: Purchase
ioda

Answer: See Explanation

Explanation:

You didn't give the methods to use but let me use 2 main methods.

First, let's use the Straight line Depreciation. This will be:

= ($71000 + $3000 + $2000 - $3000) / 5

= $73000/5

= $14600

Year 1 Depreciation = $14600

Year 2 depreciation = $14600

Secondly, let's use the double declining method of Depreciation will be:

= 1/5 × 2

= 0.2 × 2

= 0.4

= 40%

Year 1 depreciation will be:

= 76000 × 40%

= 76000 × 0.4

= $30400

Year 2 Depreciation will be:

= ($76000 - $30400) × 40%

= $45600 × 40/100

= $45600 × 0.4

= $18240

7 0
2 years ago
Other questions:
  • A company issues a callable (at par) ten-year, 6% coupon bond with annual coupon payments. The bond can be called at par in one
    8·1 answer
  • Consideration of the firm's overall objectives does not influence the final selection of a target market segment.
    7·1 answer
  • Fancy Furniture produced a batch of 2,000 coffee tables at a cost of $355,000. It was discovered that the entire batch was finis
    14·1 answer
  • A loss-purchase buy and sell agreement among three partners, funded with individual life insurance, would require how many polic
    6·1 answer
  • Hiya has a gross pay of $926.50 by how much will hiya's gross pay be reduced if she has the following deduction withheld from he
    12·1 answer
  • Alice loves all animals and is starting a new grooming business for dogs. She believes that animals are very important and plans
    12·1 answer
  • Opportunity cost occurs because of a producer’s need to
    15·2 answers
  • What is money placed in a checking account called
    15·2 answers
  • Low inflation is a sign of?
    8·1 answer
  • An amount for which of the following accounts would not appear in the Balance Sheet columns of the end-of-period spreadsheet?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!