Answer:
C. Interest Expense account is increased; the Interest Payable account is increased.
Explanation:
A secured interest can be defined as a legal right granted by a borrower to a lender (creditor) over a collateral (the borrower's property) which permits or allow the lender to have a right to possess the property as soon as the lender defaults in making payment. The payment which is expected to be made by the borrower of a mortgage loan is considered a secured obligation because it is a lien or an enforceable legal claim.
When interest is accrued on a note payable, but not paid, the Interest Expense account is increased; the Interest Payable account is increased.
Answer:
d. $60,000
Explanation:
As per passive income rules, As stated under Internal Revenue Service is a kind of statement that allows to set off the passive loss as against passive income only.
There is no rule which permits to set it off against ordinary income.
Therefore, the details in the given instance are:
Loss of 2015 = ($80,000)
Income in 2016 = $20,000
Loss at the end of 2016 = ($60,000)
This because from the income in 2016 amounting $20,000 the loss of $20,000 is set off.
Answer:
A. long-term ability to generate sufficient cash to satisfy plant capacity needs, fuel growth, and to repay debt when due.
Explanation:
Solvency is defined as the long-term ability of a business the generate enough cash flow that will allow it to continue its operations and also to pay of its debt when due.
It is used as a measure of the financial health of the business.
A business with good solvency has a high probability of remaining in operation for the foreseeable future.
<span>Scalpers lead to the understanding that there is an overabundance of demand for tickets in comparison to the supply of tickets. With buyers willing to pay a premium for the scalped tickets, this can show that there is the ability for ticket prices to be raised and customers will still purchase them.</span>
