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3 years ago

What is the advantage of a variable-interest loan?

Business

1 answer:

Maksim231197 [3]3 years ago

5 0

Answer:

Borrower can capitalize on a reference rate decrease

Explanation:

Variable interest rate is the floating interest rate, which changes with change in the interest rate given by central bank. It is not fixed it can vary. It might be increased or decreased time to time.

As a borrower Increase in interest rate will result in loss because due to variable nature we need to pay more interest and decrease in interest rate will result in profit because due to variable nature we need to pay less interest

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The most effective audit procedure for determining the collectibility of an account receivable is the

Schach [20]

The utmost effective audit procedure for determining the collectability of an account receivable is the, review of the subsequent cash collections. Reviewing the subsequent cash collections speeds up the audit procedure to determine the collectability of an account receivable.

4 0

3 years ago

Bank A pays 10% interest compounded annually on deposits, while Bank B pays 9% compounded daily. a. Based on the EAR (or EFF%),

Pie

Answer:

Bank A should be chosen.

Explanation:

Given:

Effective annual rate (EAR) of bank A = 10%

Bank B pays 9% compounded daily. EAR of bank B is calculated below:

EAR = $( 1+\frac{i}{n})^{n} -1$

Where, i is 0.09

n is compounding period that is 365 (since it is compounded daily)

EAR = $( 1+\frac{0.09}{365})^{365} -1$

= 1.0942 - 1

= 0.0942 or 9.42%

Bank B pays EAR of 9.42%

Based on EAR, Bank A should be selected as it pays higher EAR of 10%.

3 0

2 years ago

The projections for a new project show sales of 8,500 units, give or take 5 percent. The expected variable cost per unit is $28.

vitfil [10]

Answer:

$56,950

Explanation:

We will calculate the operating cash flow as follow;

OCF = {[($55 - $28.62) 8,500 ] - $170,000} × (1 - 0.35) + ($62,000 × 0.35)

= {[$224,230] - $170,000} × 0.65 + ($21,700)

= $35,249.5 + $21,700

= $56,950

Therefore, the operating cash flow is $56,950

8 0

3 years ago

If a marketing manager queries a marketing information system to determine the effect of three different levels of price for a n

9966 [12]

Answer:

sensitivity analysis

Explanation:

Based on the information provided within the question it can be said that in this scenario the marketing manager would be using sensitivity analysis. This is a method of analyzing the uncertainty outputs that a mathematical model will have on something. Which in this case would be the different price levels on a new product.

6 0

2 years ago

The accounting cycle starts with a.closing out the periodic accounts. b.recording the transaction based on the information in a

saul85 [17]

Answer:

letter b, recording the transaction based on the information in a source document

Explanation:

The "Accounting Cycle" follows a series of steps in order to assist the accounting transactions of a company or business. It starts with the "Transaction step" (the first step) where the source documents have to be examined in order to analyzed transactions. This also includes the recording of the transaction in the journal.

This step is followed by Posting the Entries into the Ledger Accounts, Preparing the Unadjusted Trial Balance, Adjusting the Journal Entries, Preparing the Adjusted Trial Balance, Recording Reversing Entries, Preparing Post-Closing Trial Balance, Record Closing of Entries and Preparing Financial Statements.

6 0

3 years ago