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3 years ago

What is a disadvantage of using credit?

Business

2 answers:

Rom4ik [11]3 years ago

5 0

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

nataly862011 [7]3 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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How do u add people as your friend?

Rudik [331]

Answer:

You click there profile, and then click add friend. and it will friend request them.

Explanation:

4 0

3 years ago

Someone please help!!!

Vitek1552 [10]

Answer:

Dollar Tree = $5,643

Target = $11,297

Explanation:

For dollar tree, using the given equation:

13,501 = 7,858 + stockholder's equity

Stockholder's equity = 13,501 - 7,858

= $5,643

For target, using the given equation:

41,290 = 29,993 + stockholder's equity

Stockholder's equity = 41,290 - 29,993

= $11,297

5 0

2 years ago

The following data pertains to activity and maintenance costs for two recent years:

Aleksandr-060686 [28]

Answer:

Y= 6000 + 0.75X

Explanation:

High and low cost technique

Using the a high and low technique, total cost can be analysed and separated into fixed and variable portion. This analysis helps in the forecast of cost and therefore important for the preparation of budget.

<em>Variable cost of maintenance</em>

= (Cost at high activity - Cost at low activity)/ (high activity - low activity)

VC per act. = ( $15000 - $12000)/(12,000-8000)

= $0.75 per activity

<em>Fixed cost of maintenance</em>

= Total cost at high activity - (VC per act × high activity)

= $15,000 - ( $0.75 × 12,000)

= $6,000

The cost formula will be:

Y= 6000 + 0.75X

Where Y = maintenance cost, X= level of activity

6 0

2 years ago

Blossom Company acquired a plant asset at the beginning of Year 1. The asset has an estimated service life of 5 years. An employ

Xelga [282]

Answer:

A) to determine the cost of the asset being depreciated we must use the first year's depreciation using the double declining method to find 40% of the asset's value:

40% of the asset's value = $29,200

asset's value = $29,200 / 40% = $73,000

B) salvage value = asset's value - total depreciation = $73,000 - $65,700 = $7,300

5 0

3 years ago

Precision Construction entered into the following transactions during a recent year.

shusha [124]

Answer:

Jan-02

Dr Bulldozer $ 250,000

Cr Cash $ 20,000

Cr Note Payable $ 230,000

Jan-03

Dr Bulldozer $ 20,000

Cr Accounts Payable $ 20,000

Jan-30

Dr Accounts Payable $ 20,000

Cr Cash $ 20,000

Feb-01

Dr Repair and Maintenance Expense $ 800

Cr Cash $ 800

Mar-01

Dr Computer Software $ 3,600

Cr Cash $ 3,600

Explanation:

Preparation of the journal entries for each of the above transactions.

Jan-02

Dr Bulldozer $ 250,000

Cr Cash $ 20,000

Cr Note Payable $ 230,000

(Purchased bulldozer)

Jan-03

Dr Bulldozer $ 20,000

Cr Accounts Payable $ 20,000

(Replaced tracks on bulldozer)

Jan-30

Dr Accounts Payable $ 20,000

Cr Cash $ 20,000

(Paid cash)

Feb-01

Dr Repair and Maintenance Expense $ 800

Cr Cash $ 800

(Repaired seat of bulldozer)

Mar-01

Dr Computer Software $ 3,600

Cr Cash $ 3,600

(Purchase computer software)

8 0

2 years ago