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2 years ago

Insurance can help you:

Business

2 answers:

Lana71 [14]2 years ago

6 0

Answer: B. financially protect against unexpected accidents

Explanation:

Insurance is known to be an agreement between an insurance company and an individual or person known as the insured. In this form of agreement, the insured pay a certain amount of money to the insurance company and the insurance company in turn cover up the expenses or cost of the insured. Furthermore, the insurance company provides the insured with financial coverage against risk in case of unforeseen occurrences such as financial loss, death, accidents or illness. Thus, the amount of money which the insured paid is known as insurance premium.

Ede4ka [16]2 years ago

3 0

The answer is B. Financially protect against unexpected accidents

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Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserv

dlinn [17]

Answer:

Change in Excess Reserves $1,350,000

Change in Required Reserves $450,000

Explanation:

Preparation of the table to show the effect of a new deposit on excess and required reserves

Based on the information given since the REQUIRED RESERVE RATIO is 25%, which means that First Main Street Bank will hold 25% of its initial deposit leading to INCREASE in the REQUIRED RESERVE by the amount of $450,000 (25%*$1,800,000) while the remaining 75% (100%-25%) will be the EXCESS RESERVES of the amount of $1,350,000 (75%*$1,800,000).

Hence:

Amount Deposited: $1,800,000

Change in Excess Reserves=$1,350,000

Change in Required Reserves= $450,000

Therefore the effect of a new deposit on excess and required reserves will be:

Change in Excess Reserves $1,350,000

Change in Required Reserves $450,000

4 0

3 years ago

Assume that a speculator purchases a put option on British pounds (with a strike price of $1.50) for $.05 per unit. A pound opti

scoray [572]

Answer:

The highest net loss of $1,562.50 (i.e. – $1,562.50)

Explanation:

This can be calculated using the following equation:

Highest net profit possible = British pounds put option price per unit × Units of the pound option

= $0.05 x 31,250

Highest net profit possible = $1,562.50

However, based on the information provided in the question, the option will not be exercised and this will result into the highest net loss of $1,562.50 (i.e. – $1,562.50).

7 0

3 years ago

The existing balance in Allowance for Doubtful Accounts is considered in computing bad debts expense in the A. direct write-off

AlexFokin [52]

The correct answer is choice b - the percentage of receivables basis.

When an accountant is calculating the bad debts expense they will take into account the balance in the Allowance for Doubtful Account when they are calculating on the percentage of sales basis.

8 0

2 years ago

In order to implement contractionary policy, the government and central bank must _____ goverment spending _______ taxes, and __

Vedmedyk [2.9K]

Answer:

increase, decrease, decrease

Explanation:

3 0

3 years ago

Venezuela Co. is building a new hockey arena at a cost of $2,500,000. It received a downpayment of $500,000 from local businesse

FromTheMoon [43]

Answer:

cash 2,011,446 debit

unamortized bond cost 50,000 debit

bonds payable 2,000,000 credit

premium on BP 61,446 credit

--to record issuance--

# Beg. Carrying //cash // expense //Amortization// End.Carrying Value

1 2,061,446 210,000 206144.57 3855.43 2,057,590

2 2,057,590 210,000 205759.02 -4240.98 2,053,349

3 2,053,349 210,000 205334.93 -4665.07 2,048,684

4 2,048,684 210,000 204868.42 -5131.58 2,043,553

5 2,043,553 210,000 204355.26 -5644.74 2,037,908

Bonds payable 1,000,000 debit

premium on BP 24,342 debit

issuance cost expense 25,000 debit

interest expense 51,217.1 debit

loss at redemption 41.959,9‬ debit

cash 1,117,500 credit

unarmortized bond issuance cost 25,000 credit

Explanation:

First, we solve the value collected which is the present value of the coupon payment and maturity

$C \times \frac{1-(1+r)^{-time} }{rate} = PV\\$

C 210,000.000

time 10

rate 0.1

$210000 \times \frac{1-(1+0.1)^{-10} }{0.1} = PV\\$

PV $1,290,359.0922

$\frac{Maturity}{(1 + rate)^{time} } = PV$

Maturity 2,000,000.00

time 10.00

rate 0.1

$\frac{2000000}{(1 + 0.1)^{10} } = PV$

PV 771,086.58

PV c $ 1,290,359.0922

PV m $ 771,086.5789

Total $ 2,061,445.6711

Now, we solve for the premium

2,061,446 - 2,000,000 = 61,446 premium

the interst expense will be calcualte as carrying value times market rate

the cash will be the same for every period thus 210,000

Finally, the difference will be the amortizationon the premium

If redem on July 1st 2016 we need to record the interst:

2,048,684 x .05 = 102.434,2/2 = 51.217,1

cash interest: 1,000,000 x 10.5% / 2 = 52,500

<em>Total cash</em>

52,500 interest

<u>1,065,000 bonds </u>

1,117,500

portion of unamortized cost 25,000

face value 1,000,000

portion of premium: 48,684/2 = 24.342‬

the loss f redemption will be the difference between the interest expense, amoritzation on premiun and write-off of the face value with the amount of cash outlay.

8 0

3 years ago