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elena-s [515]
2 years ago
13

How does a deductible affect insurance?

Business
1 answer:
Alex73 [517]2 years ago
6 0

The deductible is the amount a person must pay before their insurance will start to pay. For instance, say you have a $1,000 deductible on your car and you have a wreck that causes $3,000 worth of damage. the driver would have to pay the $1,000 first and then the insurance will help cover the other $2,000 at the rate the policy stipulates.

As for pricing, the insurance policies with higher deductibles (meaning the subscriber pays more for losses), the insurance premium would be cheaper than those policies with a smaller deductible.

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Merry Maidens Cleaning generally charges $300 for a detailed cleaning of a normal-size home. However, to generate additional bus
Kipish [7]

Answer:

The required entries relating to revenue recognized by Merry Maidens Cleaning on May 1 are:

Debit Cash [$300 x 0.9]                        $270

Credit Service revenue                         $270

<em>(To recognize the service revenue from house cleaning)</em>

Explanation:

Merry Maidens Cleaning offers service discount of 10% on a detailed cleaning of a normal-size home and charges $300, generally. This means, on May 1, Ms. E. Pearson was charged $270 ($300 x 0.9). Since the customer paid cash on the same date, the company would recognize it by debiting cash (for receipt of the money) and crediting revenue. Note that this does not necessarily means the company adopts the cash basis of accounting.

7 0
3 years ago
The cashew industry is perfectly competitive and until now each of the identical firms in the industry have been earning zero ec
gladu [14]

Answer:

a. iii. Too little

b. i. The industry's supply of cashews will exceed Q1 and the price of cashews will equal P1.

Explanation:

Allocative efficiency refers to the point in production where Marginal Revenue equals Marginal cost. As this is a perfectly competitive market, marginal revenue is the same as price which as shown in the question, exceeds Marginal cost. The firms are therefore producing too little to achieve allocative efficiency and need to produce more to make price and marginal cost equal.

In the long run, the firms will produce more such that supply would exceed the original quantity supplied of Q1. This will lead to the price falling back to P1 as there is now less scarcity.

8 0
2 years ago
Sutton is a partner of RST Partnership. RST distributed $3,000 cash and a building with an adjusted basis of $10,000 and a fair
Eduardwww [97]

Based on the basis of the distributions and Sutton's basis in the partnership, the amount of taxable distributions to Sutton is $0.

<h3 /><h3>How much of the distributions can be taxed?</h3>

The distributions can only be taxed if they exceed Sutton's basis in the partnership of $90,000.

As neither the cash distribution nor the building, have enough to surpass Sutton's basis, the taxable distributions will be $0.

Find out more on taxable distributions at brainly.com/question/26474690.

#SPJ12

5 0
1 year ago
Most formula products for infants contain Select one:
N76 [4]

Most formula products for infants contain lactose, heat-treated cows' milk protein, and vegetable oils.

Option A

<u>Explanation: </u>

Pure cow's milk, casein as well as other additives depending on the manufacturer is the most widely used baby food formula, as a source of protein, a combination of vegetable oils, a starch supply lactose, a vitamin-mineral mixture and others.

Additionally, in the Americas and in Britain, infant formulations use soybeans as a protein source (mainly) and protein hydrolyzes in its amino acid portion for infants sensitive to many other proteins are available.

In many countries, breasts have risen and, in the average life expectancy of adoption of baby foods (such as cow's milk), infant formulas have been delayed, due to both an increased breasts and decreased use of the formula around 3 and 12 months of age.

4 0
3 years ago
Xavier and Yolonda have original investments of $100,000 and $50,000 respectively in a partnership. The articles of partnership
sveticcg [70]

Answer:

Total of Xavier's share = $49750

Explanation:

The allocation of net income to both Xavier and Yolonda will be as follows,

Net Income                              90000

<u>Interest on Capital:</u>

Xavier(0.15 * 100000)      15000  

Yolonda(0.15 * 50000)    <u>  7500</u>   <u> (22500) </u>

                                              67500

<u>Salary:</u>  

Xavier                           22000  

Yolonda                           <u>20000</u>      (<u>42000)</u>

                                               25500

<u>Share of remaining profit:</u>  

Xavier                             12750  

Yolonda                             <u>12750</u>        <u>25500 </u>

<u />

Total of Xavier's share = 15000 + 22000 + 12750  = $49750

4 0
3 years ago
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