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Savatey [412]
3 years ago
6

When she uses her american express card, cathy obtains possession of goods and services when they are purchased. payment is due

when billed at a later date. american express is a type of: revolving charge account open charge account installment charge account selective charge account?
Business
1 answer:
JulsSmile [24]3 years ago
6 0
<span>American Express credit cards and credit cards in general are a type of revolving charge account. Credit cards are regarded as a revolving charge account or revolving credit because if the balance is not paid off by the period specified, it will roll over to the next period (and collect interest), thus "revolving" into the next period. This is how the debt compounds if you are not responsible with your credit cards.</span>
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KING company wants to issue new 10-years bonds to finance some needed expansion. The company currently has an 8 percent coupon b
Gemiola [76]

Answer:

Coupon rate is 7.41%

Explanation:

Using the price formula , the yield to maturity can be calculated first of all:

Bond price=coupon interest /yield to maturity

Bond price is $1080

coupon interest is 8%*$1000=$80

$1080=$80/yield to maturity

$1080*yield to maturity=$80

yield to maturity=$80/$1080

                         =7.41%

However if the price of the bond becomes the par value, the coupon rate can be calculated thus:

$1000=coupon payment/7.41%

coupon payment =$1000*7.41%

coupon payment=$74.1

coupon rate=$74.1/100=7.41%

5 0
3 years ago
Read 2 more answers
How do you compute net income for a merchandiser. Multiple choice question. Revenues - expenses. Net sales - cost of goods sold.
tester [92]

Answer:

Net income for a merchandiser is computed as:

Net sales - cost of goods sold - other expenses.

Explanation:

Net sales are the sales revenue after deducting sales discounts and allowances.  The cost of goods sold represent the beginning inventory of merchandise and current period's purchases less the ending inventory.  The difference between the net sales and the cost of goods sold is called the gross profit.  From this, other expenses incurred in running the business and generating sales are deducted, including income taxes to arrive at the net income.

7 0
3 years ago
If the actual output of a piece of equipment during an hour is 500 units and it's best operating level is at a rate of 400 units
lesya [120]

Answer:

C. 1.25

Explanation:

Mathematically;

Capacity utilization rate= actual output per hour / operating level rate per hour

Actually output per hour= 500units

Operating level rate per hour= 400

Hence,

Capacity utilization rate= 500/400

Capacity utilization rate= 1.25

4 0
3 years ago
When Resisto Systems, Inc., was formed, the company was authorized to issue 5,000 shares of $100 par value, 8 percent cumulative
kirill [66]

Answer:

                               Resisto Systems

              Stockholder Equity As on MM DD, YYYY

Common Share paid-in Capital                                   $120,000

Preferred Shares paid-in Capital                                 $250,000

Additional paid-in capital above par Common           $540,000

Additional paid-in capital above par Preferred           $12,500

Retained Earning                                                          <u>$382,000   </u>

Total Stockholder Equity                                              <u>$1,304,500</u>

Explanation:

The stockholders' equity section is reported on the Equity and Liabilities section of the balance sheet. Equity and Liabilities section are equal to the total assets value on the balance sheet. The Stockholders Equity section is  consists of the capital from common and preferred shares and any additional paid-in capital over par value. Retained earnings is also a part of this section. The retained earnings is the net balance of opening retained earnings, net income earned during the period and dividends paid during the period.

Preferred share issued = 5,000 x 0.5 = 2,500

Common Share paid-in Capital = 60,000 x $2 = $120,000

Preferred Shares paid-in Capital = 2500 x $100 = $250,000

Additional paid-in capital above par Common = ( $11 - $2 ) x 60,000 = $540,000

Additional paid-in capital above par Preferred = ( $105 - $100 ) x 2,500 = $12,500

7 0
3 years ago
On October 1, Eder Fabrication borrowed $66 million and issued a nine-month, 8% promissory note. Interest was payable at maturit
blondinia [14]

Answer:

Explanation:

The adjusting entries are shown below:

1. Cash A/c Dr $66,000,000

        To Short term notes payable A/c $66,000,000

(Being issue of short term note payable is recorded)

2. Interest expense A/c Dr $1,320,000

        To Interest payable A/c                    $1,320,000

(Being interest is recorded)

The interest amount is computed below:

= Principal × rate of interest × number of months ÷ (total number of months in a year)

= $66,000,000 × 8% × ( 3 months ÷ 12 months)

= $1,320,000

The 3 months is calculated from October 1 to December 31

3 0
3 years ago
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