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3 years ago

The set of skills and knowledge needed to make informed decision about money matters is called

Business

2 answers:

emmasim [6.3K]3 years ago

8 0

Financial literacy
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Nutka1998 [239]3 years ago

4 0

Answer:

The correct answer is financial literacy.

Explanation:

Financial literacy are the abilities and skills of understanding or education that an individual possesses in financial areas, which will allow him to make good decisions regarding the financial resources he possesses.

<u>The individual must be instructed</u> as to what is necessary to rearrange a budget, keep track of the expenses he makes, pay his debts, etc., and thus be able to achieve financial stability. All this will be done through financial education.

<u>Having education in this field will prevent a person from facing different scams, abusive loans, mortgages or poor decision making.</u>

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Lusk Corporation produces and sells 15,500 units of Product X each month. The selling price of Product X is $25 per unit, and va

Oxana [17]

Answer:

($62,000)

Explanation:

Calculation for the monthly financial advantage (disadvantage) for the company of eliminating this product

Keep Product X Drop Product X Difference

Sales $387,500 $0 $(387,500)

($25 per unit *15,500=$387,500)

Variable expenses $294,500 $0 $294,500

($19 per unit*15,500=$294,500)

Contribution margin $93,000 $0 $(93,000)

Fixed expenses $105,000 $74,000 $31,000

Net operating income (loss)$(12,000)$(74,000)$(62,000)

Therefore the monthly financial advantage (disadvantage) for the company of eliminating this product will be decrease in Net operating amount of ($62,000).

3 0

3 years ago

It is argued that LIFO should not be allowed to compute net income because a. it does not match costs to revenues, especially wh

Bogdan [553]

Answer:

d. it causes profits to be understated when prices are rising and allows a company to dodge taxes.

Explanation:

The LIFO method should not be permitted to determine the net income as in this case the profits would be understated at the time when price is increased due to this it permits the company to dodge taxes as the inventory consumed in the production process also the high inventory value would be involved in the cost of sales that represent the high cost, this result in lower profits and taxes

Hence, the option d is correct

8 0

3 years ago

Chris purchased a 10 year 100 par value bond where 6% coupons are paid semiannually. Cheryl purchased a 100 par value bond where

WITCHER [35]

Answer:

Chris paid $109.68 for his bond. Since he paid a premium for the bond, the YTM is lower than the coupon rate.

Explanation:

yield of Cheryl's bond is 6% since she purchased it at par and the bond's coupon is 6%

if Chris's bond yields 80% of Cheryl's, it will yield 6% x 0.8 = 4.8%

we can use the approximate yield to maturity formula to find the market price of Chris's bond:

2.4%(semiannual) = {3 + [(100 - MV)/20]} / [(100 + MV)/2]

0.024 x [(100 + MV)/2] = 3 + [(100 - MV)/20]

0.024 x (50 + 0.5MV) = 3 + 5 - 0.05MV

1.2 + 0.012MV = 8 - 0.05MV

0.062MV = 6.8

MV = 6.8 / 0.062 = 109.68

8 0

3 years ago

__________ is a contra asset account representing the amount of accounts receivable that we do not expect to collect.

maw [93]

Answer:

Allowance for uncollectible accounts

Explanation:

This account is a contra asset account which says that the account receivable amount is not collected in near future

It is shown in the asset side of the balance sheet

Assets side

Current Assets

Accounts receivable XXXXX

Less: Allowance for doubtful debts (XXXXX)

Net accounts receivable XXXXX

It is an estimated amount which is not to be paid by the customer in respect to goods delivered to them

The journal entry would be

Bad debt expense A/c Dr XXXXX

To Allowance for uncollectible accounts A/c XXXXX

(Being the uncollected amount is recorded)

6 0

3 years ago

Lindy Corporation has 1,000,000 authorized shares of $20 par value common stock. As of June 30, 2014, there were 600,000 shares

sertanlavr [38]

Explanation:

The journal entries are as follows

a. Retained earnings A/c Dr $300,000 (600,000 shares × $0.50)

To Dividend payable A/c $300,000

(Being the dividend is declared)

b. No journal entry is required

c. Dividend payable A/c $300,000

To Cash A/c $300,000

(Being the dividend is paid for cash is recorded)

3 0

3 years ago