Answer:
The correct answer is option D.
Explanation:
An interest rate is an amount charged by a lender on the use of assets. It is expressed as a percentage of the principal. The interest rate is the return on lending for a lender and the cost of borrowing for the borrower.
Interest is typically paid on a loan to compensate for the opportunity cost of lending money. A lender could invest the money instead of lending and get a higher return from it.
To compensate for not using the money for an alternative purpose or for temporarily making do without the money that was lent, the borrower pays a certain percentage of principal to the lender.
Answer:
Tunneling Inc.
Degree of operating leverage
= Contribution Margin divided by Operating Income
= $440,000/$290,000 = 1.52
Explanation:
(a) Data and Calculations:
Sales Revenue = $840,000 (10,000 x $84)
Variable cost = $400,000 (10,000 x $40)
Contribution = $440,000
Fixed costs = $100,000
Depreciation = $50,000
Operating Income = $290,000
Tax (21%) ($60,900)
Net Income = $229,100
(b) The degree of operating leverage for Tunneling Inc. is 1.52. It shows the financial impact of a change in sales revenue on Tunneling Inc.'s earnings. Analysts usually work this ratio out to determine this important effect.
Answer:
Legal obligation will arise from inadvertence of one thing or a deliberate act. There are 3 categories of erroneous conduct lawfully. Its fissure of agreement, corruption and one who is pretentious or abraded thanks to the act of additional person.
(1)
The necessities that the automobile should demonstrate to carry mister. Embarrassed of carelessness are as per RES IPSA LOQUITUR belief. The belief RES IPSA LOQUITUR suggests that "the factor expresses for himself". In keeping with this opinion, the broken or damage himself is that the resistant and it expresses for the performance of the inattention. This belief needs the subsequent things:
- The affair or act ought to happen thanks to the carelessness
- the carelessness ought to cause some injury or damage
- the litigant ought to have fashionable management over the device or instrumentality.
- The casualty shouldn't have underwrote something to the carelessness.
(2)
Permitting to the law of carelessness, underneath request of householders and operatives of vehicles, P. Suppliers are control lawfully chargeable for the grievance to the automobile. In keeping with this, the vendor of vehicle United Nations agency energies sloppily and origins grievance is liable for the obligation produced to the broken individual. The proprietor will have the instruction of last vibrant probability. Enclose if the worker of the car isn't the proprietor then the possessor is not liable for the act of the carelessness of the worker delivered if there's associate deficiency of agency association. During this case, agency association exists. Thus, P Distributors are control chargeable for the injury to the celebration.
(b)
The possessor of vehicle United Nations agency drives inaccurately and causes grievance is liable for the liability produced to the broken individual. The possessor will have the instruction of last vibrant probability. In case, if the worker of the car isn't the possessor then the proprietor is not liable for the performance of the carelessness of the worker delivered if there's associate deficiency of agency association. During this case each belief of RES IPSA LOQUITUR and regulation of carelessness are pertinent. Thus, the Mr. Tom is control chargeable for the performance of his partner.
Answer: Into functional departments, with departmental managers who report to the CEO and small corporate staff
Explanation: In simple words, functional structure refers to the structure under which an organisation divides its work by making different departments for the core activities that are to be performed.
Under such structure, every department have employees working on a single activity they were assigned to like sales finance etc. Every department gets one manager who is liable to report to the CEO of the company.
Answer:
Effective interest on June 30 on a 6% $60 million bond at 7% effective rate is $1,950,778
The interest is treated in the books of account thus:
Debit interest expense $1,950,778
Credit Bond account $1,950,778
Explanation:
The effective interest is computed using the below formula
Amount x Effective Rate (%) = Interest Expense
Amount=$55,736,520
Effective rate =7%/2 =3.5% semi-annually
Interest expense=$55,736,520*3.5%
Interest expense=$1,950,778
