Answer:
To assess the risk associated with a company's use of liabilities
Explanation:
The formula for debt =total liabilities/equity
It is evident from the formula above that debt ratio does not measure the ratio of equity to expenses, neither does it determine the amount of debt that could be borrowed.
In actual fact, it measures the risk inherent in making use of debt as a source of finance instead of equity.
Answer:
$4,410
Explanation:
Discount refers the amount that is deducted from the usal price of a good sold or service rendered.
From the question, the credit terms 2/10, n/30 implies 2% discount if the amount owed is paid within 10 days while no discount will be enjoyed if the amount owed is paid after 10 days but must be beyond 30 days.
Therefore, the amount owed by Lulu's if the store pays within the discount period, i.e. within 10 days, can be calculated as follows:
Discount = (Purchases - Merchandise returned) * 2% = ($5,500 - $1,000) * 2% = $90
Amount owed = Purchases - Merchandise returned - Discount = $5,500 - $1,000 - 90 = $4,410.
Therefore, the amount owed by Lulu's if the store pays within the discount period is $4,410.
Answer:
Option (A) is correct.
Explanation:
Accounting rate of return is determined to take the efficient business decision related to the capital budgeting and it tell us whether to accept the proposal or not. The following is the formula:
Accounting rate of return = (Average Income ÷ Initial Investment)
For example:
Net profit for 3 years are as follows:
2012 - 13 = $50 million
2013-14 = $100 million
2014-15 = $150 million
Initial investment = $200
Average profit = ($50 + $100 + $150) ÷ 3
= $100
Accounting rate of return = (Average Income ÷ Initial Investment)
= $100 ÷ $200
= 0.5 or 50%
Answer:
Pegged exchange rate system
Explanation:
In the pegged exchange rate system, a country ties its currency exchange price to that of a more widely used currency at a fixed rate. The US dollar is the most accepted currency for international trade. Countries that use the fixed exchange system peg their currency price to the US dollar. The government will set a fix the exchange rate of its currency relative to the US dollar value.
A pegged exchange rate is also known as a fixed exchange rate. A pegged or fixed exchange rate keeps the currency value within a narrow range. It gives certainty to exporters and importers and helps the government to keep inflation low.
Less elastic than the demand for dr. pepper.