Answer:
d) The value of equity is $0
Explanation:
Bank loans are classified as performing and nonperforming loans. Nonperforming loans that stay for over a long period (usually 12 months) are considered to be a loss.
When a bank makes a loss on loans (loan goes bad due to nonrepayment) they make provisions and debit the business equity for the loss.
The given loan amount is $800 and the bank had to provision 5% of that amount.
Loss from loan= 800* 0.05= $40
This is deducted from equity= 40- 40= $0
Answer:
I got a joke for you :)
Why do we tell actors to “break a leg?”
Because every play has a cast.
Answer:
The Correct Statement is the Second Statement. Effective speaker look consider the nature and the needs of audience and then decide the type of visual aid.
Explanation:
Multimedia slides are extremely useful, and often helps in various ways to deliver your message. There is no doubt in it.
However, you can't say multimedia slides are the "one best way" to present.
In certain cases, depending on the audience, you might not need and multimedia slide at all!
Maybe you'll just have to use your body language, act out a drama or even sing a song to convey the message to the audience.
And apart from that, it the times of technical failures, where you cannot use the computer or any electrical devices, you'll have to use traditional methods too.
Moreover, if the audience is not "tech-savvy" and are more of a traditional nature, then traditional or pen and paper based methods might just work out!
Answer:
c. $360 increase in excess reserves and a $40 increase in required reserves
Explanation:
Required reserves is the amount of reserves that is required by the Central bank that banks should keep.
Required reserve = reserve ratio × deposit
= 0.1 × $400 = $40
Excess reserve is the amount of reserves kept in excess of the required reserves.
Excess reserve = Deposit - Required reserve = $400 - $40 = $360
I hope my answer helps you
Answer: According to Ian Redpath and Greg Urban, the threshold amount required for conclusively stating whether a substantial basis adjustment is mandatory is $250,000. The amount required is $250,000 in order for one to know whether they are in need for a substantial basis reduction or maybe not. It's required when the amount indeed exceeds $250,000.
