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Sholpan [36]
3 years ago
8

A bank can decrease the degree of moral hazard if it a. ​Monitors the borrowers behaviors b. ​Placing covenants on the loan c. ​

Both of the above d. ​None of the above
Business
2 answers:
jeyben [28]3 years ago
7 0

Answer:

C. Both of the above

Explanation:

marshall27 [118]3 years ago
3 0

Answer:

The correct answer is letter "C": Both of the above.

Explanation:

In banking, moral hazard represents all of those negative behaviors consumers have that could lead to incurring in debt. There are several reasons why borrowers can fall into dent but <em>banks can reduce the losses risk by checking their credit reports to find out if borrowers are incurring much debt they can handle. </em>

Besides, <em>by setting clear loan terms, banks make sure borrowers are subject to penalties in case of not fulfilling their repayment obligations.</em>

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Rodriguez Company pays $363,285 for real estate with land, land improvements, and a building. Land is appraised at $198,000; lan
Irina18 [472]

Answer:

1.Land $163,478

Land Improvement $54,493

Building $145,314

2.Dr Land $163,478

Dr r Land Improvement $54,493

Dr Building $145,314

Cr Cash $363,285

Explanation:

1. Calculation to Allocate the total cost among the three assets

First step is to Add up all expenditure costs Total Expenditure costs =$198,000+$66,000+$176,000

Total Expenditure costs =$440,000

Second step is to divide each expenditure up by the total amount

Land=($198,000/$440,000= 0.45)

Land improvement=($66,000/$440,000= 0.15)

Building=($176,000/$440,000= 0.40)

Now let Allocate the total cost among the three assets

Land=0.45* $363,285

Land = $163,478

Land improvement=0.15*$363,285

Land Improvement=$54,493

Building=0.40*$363,285

Building=$145,314

Total $363,285

($163,478+$54,493+$145,314)

Therefore the total allocation cost among the three assets is:

Land $163,478

Land Improvement $54,493

Building $145,314

2. Preparation of the journal entry to record the purchase

Dr Land $163,478

Dr r Land Improvement $54,493

Dr Building $145,314

Cr Cash $363,285

(To record purchase)

3 0
3 years ago
Why net profit will be higher if increases average prices to customers?​
vampirchik [111]

Answer:

Higher prices with same sales quantity will mean greater profit.

Explanation:

Let's hold some variables constant. If a business sells books, and they take the prices up, if they sell the same quantity (at higher prices) this would increase revenues. Higher revenues, less the same cost structure (variable and fixed costs) will lead to a greater profit generation. Of course in the real world, price elasticity of demand comes in play when prices are changed. If prices go up, typically sales quantity will decrease and there may be a net effect in revenue and hence profit. In the simple case where prices go up and sales quantity is unaffected, net profit will rise.

6 0
3 years ago
what is an everyday example of scarcity that demonstrates why scarcity is a basic economic problem that faces society?
zhannawk [14.2K]

of every day scarcity could it be how the desert doesn't really have water so the desert has a scarcity of water scarcity is a basic economic problem that Society faces because the world sometimes runs out of things that we need so certain people have to make loopholes to get to get around them another example is how during the coronavirus we had a scarcity of sanitizer Clorox wipes bleach and toilet paper

7 0
3 years ago
On September 1, 20X1, Revsine Co. approved a plan to dispose of a segment of its business. Revsine expected that the sale would
Lady_Fox [76]

Answer:

losses from discontinued operations 395,000

Explanation:

From 1/1/20X1 to 8/31/20X1 <u>realized </u>loss 300,000

From 9/1/20X1 to 12/31/20X1  <u>realized </u>loss 200,00

<em><u>EXPECTED </u></em>Profit from 1/1/20X2 to 3/31/20X2 400,000

As the accounting carries the accrued principles Revsine's expectations aer not accrued thus, do not included until realized.

The company has losses for 500,000 with a tax-rate of 21%

This generates a tax-shield of 105,000

net of taxes: 500,000 - 105,000 = 395,000

7 0
3 years ago
On September 1, 2021, Southwest Airlines borrows $40.3 million, of which $8.6 million is due next year. Show how Southwest Airli
alexandr402 [8]

Answer and Explanation:

The presentation of the liabilities side of the balance sheet is presented below:

<u>                                                  Southwest Airlines </u>

<u>                                                    Liabilities side</u>

<u>                                                      Balance sheet</u>

Current liability

Current portion of the long term debt $8,600,000

Long term liability

Notes payable                                       $31,700,000   ($40,300,000 - $8,600,000)

Total liabilities                                      $40,300,000

4 0
3 years ago
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