All categories

3 years ago

Which type of debt is the least attractive for a consumer

1 answer:

6 0

Usually, unsecured debt is least attractive for consumers because it carries a higher interest rate than the others. In secured debt, including a mortgage, the lender has collateral that can help offset the cost of a loan if the consumer defaults; therefore it is less risky for the bank and they charge a lower rate. In an unsecured debt, like credit cards, the bank has no collateral to collect and the debt is more risky for them.

You might be interested in

Foreign firms should seek alliances with well-qualified local companies in countries characterized by inadequate legal and polit

balu736 [363]

<span>Foreign firms should seek this sorts of alliances, because making them is a good way to obtain knowledge of local markets; contrast this to a foreign firm attempting to start up a branch on their own, perhaps in the form of a greenfield venture. They would potentially have to figure out local market conditions from scratch, whereas a local company would potentially have years of successful experience and knowledge already at their fingertips.</span>

8 0

3 years ago

Windsor Windows manufactures and sells custom storm windows for enclosed porches. Windsor also provides installation service for

Alina [70]

Answer:

June 1, 2021

No entry – neither party has performed under the contract.

August 1,2021

Dr. Cash $4,000

Dr. Accounts Receivable $700

Cr. Unearned Service Revenue $1,085

Cr. Sales revenue $3,615

Dr. Cost of goods Sold $2,300

Cr. Inventory $2,300

Explanation:

As no one performed under the contract on June 1, 2021, so there will be no entry on this day.

On August 1, 2021, Windsor has 2 performance obligations

First: Delivery of the windows

Second: Installation of the windows

Fair value of Windows = $4,000

Fair value of Installation services = $1,200

Fair Value of Contract = $4,000 + $1,200 = $5,200

Allocation of to revenue is based on the ratio of fair value of each performance to the total fair value of contract, As below

Windows = ($4,000 / $5,200) X $4,700 = $3,615 (round to nearest dollar)

Installation services = ($1,200/$5,200) X $4,700 = $1,085 (round to nearest dollar)

Total Revenue recognized = $4,700

8 0

3 years ago

Problem 2 (9 points) The following information was taken from the income statement and balance sheet of The Perryman Company for

Len [333]

Answer and Explanation:

The computation is shown below;

The net profit margin is

= Net income ÷ sales revenue

= $184,000 ÷ $574,000

= 32%

The asset turnover is

= Sales revenue ÷ average of assets

= $574,000 ÷ ($2,142,000 + $1,998,000) ÷ 2

= $574,000 ÷ $2,070,000

= 0.28 times

c. The return on assets is

= Net income ÷ average of assets

= $184,000 ÷ $2,070,000

= 0.089

= 8.89%

3 0

3 years ago

The transparency of competitive advantage refers to the extent to which

kolbaska11 [484]

The transparency of a competitive advantage refers to the extent to which COMPETITORS CAN IDENTIFY THE REASONS FOR THE COMPETITIVE ADVANTAGE OF ANOTHER COMPANY.
The transparency refers to the speed at which other companies can identify and understand the relationship of resources and capabilities that is supporting a successful company strategy.

7 0

3 years ago

Louise works for a tax firm that caters to individuals and small businesses. Each year when tax season rolls around, the firm is

kondor19780726 [428]

The correct answers for the following questions are:

Extranet
ED
Operating cost.

<h3>Which type of network will best assist the firm?</h3>

An extranet is the type of network that will best assist the firm in receiving and managing documents from clients.

Therefore, Option D is correct.

<h3>Where should Louise place the file server?</h3>

The file server should be placed in an Encryption Device to allow safety while clients are signing into for document management.

Therefore, Option B is correct.

<h3>What is an Operating cost?</h3>

This means the ongoing expenses that are incurred from the normal day-to-day of running a business.