Answer:
<em>False</em>
Explanation:
<em>Subprime lending means lending to borrowers and charging interest that is </em><u><em>above</em></u><em> the current prime interest rate. </em>
The <em>current prime interest</em> refers to the rate offered to the best credit rated customers based on their credit history. This rate is lower as it is meant to be an attraction for the customers who are good credit payers and takers.
The <em>sub-prime lending</em> refers to giving loans at a rate higher than current prime interest rate to the borrowers who are lower on credit rating. This lending takes on higher risk and hence thereby charges higher interest from the borrowers.
Answer:
b. that they agreed to purchase.
Explanation:
A minor is a person who is under the age of 18 and unable to make decision on his own such as mentally impaired or incompetent persons .
A minor cannot enter a contract like adults but if under any circumstance they enter into a contract of sale purchase of daily goods like clothing etc, they are liable to pay the price which they agreed to pay.
Their parents are liable only if the contract was made according to the parent's will etc.
If the minor is unable to pay the agreed amount then the minor should return the goods or fulfill any other liability as imposed by the court of law.
Answer:
A. 566 pounds
Explanation:
Given: Demand for rice is very consistent= 200 pounds per month.
Cost of rice per order= $50 per order.
Rice cost= $5 per pound.
Carrying charge= 15%
EOQ: Economic order quantity (EOQ) is the number of units that company should include in their inventory with each order to reduce cost of inventory.
Now, calculating EOQ.
Formula; EOQ= 
D= Demand in units for specified period.
P= relevant ordering costs per order.
C= Relevant carrying cost of one unit in stock for the time period used for D.
EOQ= 
⇒ EOQ= 
Opening parenthesis
⇒ EOQ= 
⇒ EOQ= 
∴ EOQ= 
Hence, Economic order quantity is 566 pounds.
Answer:
Yes, because they lead people to make poor decisions.
Explanation:
<span>1. journalize the entry to record the amount of cash proceeds from the issuance of the bonds on july 1, 2016.
Cash 42,309,236
Discount on bonds payable 3,690,764
Bonds payable 46,000,000
</span><span>2. journalize the entries to record the following:
a. the first semiannual interest payment on december 31, 2016, and the amortization of the bond discount, using the straight-line method. (round to the nearest dollar.
Interest Expense 2,327,007.98
Discount on Bonds Payable 92,269.10
Cash 2,234,738.88
b. the interest payment on june 30, 2017, and the amortization of the bond discount, using the straight-line method. (round to the nearest dollar.
</span>nterest Expense 2,327,007.98
Discount on Bonds Payable 92,269.10
<span> Cash 2,234,738.88
</span><span>
3. </span><span>determine the total interest expense for 2016.
</span>42,309,236 x 11% = 4,654,015.96 annual interest expense
4,654,015.96 x 6/12 = 2,327,007.98 semi annual expense
