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2 years ago

Define finance charge

Business

2 answers:

nydimaria [60]2 years ago

8 0

Answer:

finance charge is any fee representing the cost of credit, or the cost of borrowing. It is interest accrued on, and fees charged for, some forms of credit. It includes not only interest but other charges as well, such as financial transaction fees.

Explanation:

Setler [38]2 years ago

7 0

Answer:

A finance charge is the cost of borrowing money, including interest and other fees. It can be any fee representing the cost of credit, or the cost of borrowing.

Explanation:

You might be interested in

Which of the following will increase a company’s current liabilities? You may select more than one answer.

vichka [17]

Answer:

A company purchases inventory on credit.

Explanation:

Current liabilities are those that have to be settled within the fiscal year. The statement above does not specify if the credit has to be paid within the fiscal year, but most likely it has to, because inventories do not usually represent a long-term debt.

So under this sceneario, purchasing inventory on credit would represent an increase in the current liabilities of the firm.

8 0

2 years ago

Imperial Jewelers manufactures and sells a gold bracelet for $403.00. The company’s accounting system says that the unit product

AysviL [449]

Answer:

a) Financial advantage  $2,208 

b) The company should accept the special order, as it will increase its profit by $2,208

Explanation:

The relevant costs for decision to accept the special order are

I Incremental Revenue from the special order

2. incremental variable cost

3. The cost of the special tool

Unit variable cost = 143 + 90 + 8 + 7 = $240

Note that that the increase in material cost of $8 and the variable manufacturing overhead of $7 are relevant to the special order decision. Hence they are added.

And the balance of manufacturing overhead would be incurred either way. Therefore , they are not relevant for the decision

Sales revenue from special order

(22× $361.00) 7942

Variable cost of special order

(22× $240 ) (5280 )

Cost of special tool (454)

Financial advantage  2,208 

The company should accept the special order, as it will increase its profit by $2,208

3 0

2 years ago

On January 1, 2009, Diego owed $14,033 to his friend Ricardo, who was kind enough not to charge Diego any interest. Each month d

aleksandrvk [35]

Answer:

$481

Explanation:

Amount paid = Amount lent - Amount left

Amount paid = $14,033 - $8,261

Amount paid = $5,772

Average amount paid each month = Amount paid / Number of months

Average amount paid each month = $5,772 / 12

Average amount paid each month = $481

So, the average amount of Diego's monthly payments is $481.

6 0

2 years ago

An agreement to exchange dollar bank deposits for euro bank deposits in one month is a:_________

koban [17]

An agreement to exchange dollar bank deposits for euro bank deposits in one month is a forward transaction.

<h3>What is a forward contract?</h3>

A tailored agreement between two parties to purchase or sell an item at a predetermined price at a later date is known as a forward contract. Although its non-standardized nature makes it particularly suitable for hedging, a forward contract can be utilized for speculating or hedging.

A forward contract can be tailored to a commodity, amount, and delivery date, unlike typical futures contracts. Grain, precious metals, natural gas, oil, and even chicken are examples of traded commodities. Settlement of a forward contract may take place in cash or by delivery.

Forward contracts are categorized as over-the-counter (OTC) instruments because they are not traded on a centralized exchange. While the OTC nature of these products makes it simpler to adjust terms, the absence of a centralized clearinghouse also increases the chance of default.

Thus, it is a forward transaction that is used to exchange dollar bank deposits for euro bank deposits in one month.

For more information on Forward Transaction, refer to the given link:

brainly.com/question/28238316

#SPJ4

8 0

10 months ago

Blossom Company purchased equipment on January 1 at a list price of $100000, with credit terms 2/10, n/30. Payment was made with

VikaD [51]

Answer:

the total cost of the new equipment is $105,500

Explanation:

The computation of the total cost of the new equipment is given below:

Total cost of the new equipment is

= Net price + Sales tax + Installation charges + Payment for concrete slab

= [$100,000 - ($100,000 × 2%)] + $3,000 + $1,500 + $3,000

= $105,500

Hence, the total cost of the new equipment is $105,500

6 0

2 years ago