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2 years ago

What is a disadvantage of using credit?

Business

2 answers:

Rom4ik [11]2 years ago

5 0

Not being able to pay it off is a big one.

nataly862011 [7]2 years ago

4 0

Answer:

Incurring inflated interest charges over and above the principal amount

Explanation:

When items are purchased on credit, it essentially means that the buyer has taken a loan to finance their purchase. This loan incurs interest. Interest is the cost of using spending cash money to buy a good or a service in the current time period instead of saving and purchasing it at a later period. Credit providers tend to charge extremely high interest for the convenience of flexible purchasing power. These interest charges, accumulated over time, become a source of insolvency for the debtors who are unable to repay the interest, the principal amount or both.

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The era in marketing history characterized by the notion that the consumer is king is known as the ________ era.

marta [7]

Answer:

The Selling Era

Kotler refers to this as businesses "selling what they make, rather than making what the market wants to buy." ... Selling-era tactics can be risky for companies, as the hard sell can turn off consumers, perhaps even push them into the arms of a competitor.

Explanation:

6 0

2 years ago

Carson company on july 15 sells merchandise on account to tayler co. for $2,000, terms 2/10, n/30. on july 20 tayler co. returns

julsineya [31]

The amount of cash received will be the net of discounts and sales returns.

Given,

the sales = $ 2,000

The sales return = $ 800

The discount will be allowed only if the payment is made within the discounts period i.e. 10 days. The sales were made in 15th July and Payment is made on 24th July, thus Carson company is eligible for the discount. The discount will be calculated on the sales net of returns

Net sales = $ 2,000 - $ 800 = $ 1200

Discount = 2 % X $ 1,200 = $ 24

The cash received = $ 2,000 - $ 800 - $ 24 = $ 1,176

5 0

3 years ago

Belvedere Corporation had a balance in its Equipment account on January 1, Year 1 of $341,200. During the year, equipment origin

Varvara68 [4.7K]

Answer:

$56,600.00

Explanation:

The amount the company spent on purchase of additional equipment during year 1 can be ascertained using the formula below:

amount spent on additional equipment=ending balance of equipment-(beginning balance-cost of equipment sold)

ending balance of equipment is $304,700

beginning balance is $341,200

cost of equipment sold is $93,100

amount on additional equipment=$304,700-($341,200-$93,100)=$56,600.00

5 0

3 years ago

The management at an auto manufacturer planned to terminate production due to labor issues that were consuming most of the profi

Naya [18.7K]

Answer:

Decertification

Explanation:

4 0

2 years ago

Relix, Inc., is a domestic corporation with the following temporary timing differences for the current year. The building deprec

Rina8888 [55]

Answer:

Computation of Provision for income tax expense

Particulars Amount

Pre tax financial income $4,800

Add: Non deductible business meal $780

Less: Tax exempt interest -$2,375

Less: Book tax difference in depreciation -$16,800

of building and Furniture & fixtures

Add: Accured litigation expenses $16,000

Taxable Income $2,405

Provision for income tax Expense

Current Tax (21% of $2,405) $505

Deferred tax liability $3,528

Deferred tax asset -$3,360

Total Provision for income tax expense $673

Computation of book net income after tax

Particulars Amount

Book net income before taxes $4,800

Less: Provision for income tax expense -$673

Net Income after tax $4,127

3 0

2 years ago