All categories

3 years ago

Mary is an authorized user on her parents' credit card. What may happen if Mary doesn't use the card in a responsible way?

Business

2 answers:

tatyana61 [14]3 years ago

7 0

The answer is: Mary and Mary's parents' credit may be damaged

Even though Mary is an authorized user of the card, the credit history from the credit card that Mary use is still tied to her parent's name.

This mean that if Mary do fiscally irresponsible behavior such as maxing out the credit cards, or keep losing it, her parents' credit score would plummet and it would be hard for them to obtain loans in the future.

iren [92.7K]3 years ago

5 0

If Mary doesn't use the card in a responsible way, there's a possibility that Mary will spend more than what her parents allowed her to spend. Therefore, giving more payment duties to her parents which could also result to debt if the amount spend is too much.

You might be interested in

Record the following process costing transactions in the general journal:

Ne4ueva [31]

Answer:

Raw Materials $9,300 (debit)

Account Payable $9,300 (credit)

Assembly Department $4,300 (debit)

Finishing Department $2,400 (debit)

Raw Materials $6,700 (credit)

WIP Inventory-Assembly $10,500 (debit)

Cash $10,500 (credit)

Overheads $12,100 (debit)

Property taxes-plant: Payable $1, 800 (credit)

Utilities-plant : Payable $4, 800 (credit)

Insurance-plant : Payable, $1, 700 (credit)

Provision for Depreciation-plant, $3, 800 (credit)

Work In Process - Assembly Department $7,600 (debit)

Direct labor, $5, 000 (credit)

Manufacturing overhead, $2, 600 (credit)

Work In Process - Finishing Department $11,300 (debit)

Direct labor, $4,700 (credit)

Manufacturing overhead, $6,600 (credit)

Finishing Department, $10,500 (debit)

Assembly Department $10,500 (credit)

Finished Goods Inventory $15,600 (debit)

Finishing Department $15,600 (credit)

Explanation:

Manufacturing costs accumulate in the Work In Process Account of their respective departments.

When goods are transferred out of the Assembly Department to the Finishing Department, de-recognize the cost from Assembly Department (credit) and recognized the cost in Finishing Department (debit).

When cost of goods completed are transferred out of the Finishing Department into Finished Goods Inventory, we de-recognize the cost from Finishing Department and recognize it in the Finished Goods Inventory.

5 0

3 years ago

Cranford Company completed and transferred out 2,700 units in May 2016. There were 300 units in the Work-in-Process Inventory on

Lynna [10]

Answer:

The cost of the work transferred-out during May is $18,630

Explanation:

For computing the cost of work transferred, first we have to compute the conversion cost per unit and material cost per unit

The conversion cost per uni = Conversion cost ÷ (transferred units + work in progress)

= $11,160 ÷ (2,700 + 300 × 30%)

= $11,160 ÷ (2,700 + 90)

= $11,160 ÷ 2,790

= $4 per unit

Now, material cost per unit = Material cost ÷ (transferred units + work in progress)

= $8,700 ÷ (2,700+300)

= $8700 ÷ 3,000

= $2.9 per unit

So, total cost of the work transferred is equals to

= Transferred units × conversion cost per unit + transferred units × material cost per unit

= 2,700 × $4 + 2,700 × $2.9

= $10,800 + $7,830

= $18,630

Hence, the cost of the work transferred-out during May is $18,630

6 0

3 years ago

Short Term Inc. has issued zero-coupon bonds that mature in one year. The returns from holding these bonds have a beta of 0.25.

Nataly [62]

Answer:

1. Current bonds price = $81.86.

2. Yield to maturity = 22.16%.

3. 3. Expected Return = 7.5%.

Explanation:

Required Rate = Rf + beta*MRP

= 5% + 0.25*(15% - 5%)

= 5% +0.25*10%

= 5% + 2.5% = 7.5%

Required Rate = 7.5%

Expected Future Value = 70% x $100 + 30% x $60

= (0.7*$100) + (0.3*$60)

= $(70+18) = $88

Expected Future Value = $88

1. Current bonds price = 88/1.075 = $81.86

2. Yield to maturity = 100/81.86 - 1 = 1.22159785-1 = 0.22159785 = 22.159785% = 22.16%

3. Expected Return = 7.5%

6 0

3 years ago

A dog grooming business is walking through the target market defining process and is now asking questions about its potential cu

siniylev [52]

Answer:

Explanation:

4 0

3 years ago

In a catalog a coat was on sale for $65.55 this week. It regularly sells for $77.77. If the sales tax is 6% and shipping is belo

bazaltina [42]

Answer:

$14.96

Explanation:

Shipping and handling charges are attached.

Given: Discounted price= $65.55.

Regular sales price= $77.77

Sales tax= 6%.

Now, find the cost of coat after tax.

Cost of coat= $77.77+(77.77\times 6\%)$

⇒ Cost of coat= $77.77+ 4.66= \$ 82.43$

Adding shipping charges to the cost= $82.43+8.95= \$91.39$

Hence, cost of coat after tax and shipping charges= $91.39.

Next finding total cost of coat if sold at discount after tax.

Cost of coat at discounted price after tax= $65.55+(65.55\times 6\%)$

⇒ Cost of coat at discounted price after tax= $65.55+ 3.93$

⇒ Cost of coat at discounted price after tax= $\$ 69.48$

Adding shipping charges to the cost of coat= $69.48+6.95=\$ 76.43$

Hence, cost of coat at discounted price after tax and shipping charges= $76.43.

Finding saving amount by ordering coat at the sale price or discounted price.

∴ Saving = $Total\ cost\ of\ coat\ at\ regular\ price - Total\ cost\ of\ coat\ at\ discounted\ price$

Saving= $91.39-76.43= \$ 14.96$

Hene, Total saving by ordering coat at the sale price is $14.96

7 0

3 years ago