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3 years ago

Which best explains what a credit score represents?

2 answers:

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A credit score is a statistical number that depicts a person's creditworthiness. Lenders use a credit score to evaluate the probability that a person repays his debts. Companies generate a credit score for each person with a Social Security number using data from the person's previous credit history. A credit score is a three-digit number ranging from 300 to 850, with 850 as the highest score that a borrower can achieve. The higher the score, the more financially trustworthy a person is considered to be.

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Nady [450]3 years ago

3 0

You might be interested in

On the first day of its fiscal year, Chin Company issued $10,000,000 of five-year, 7% bonds to finance its operations of produci

icang [17]

Answer:

The description for problem is listed throughout the section there on the explanations.

Explanation:

(A)...

(1) Prepare your entry in the report to document the bonds issuance.

To track or record bond issues, debit card wallet, debit discount, including credit bond liable as seen below:

Date Account title Debit Credit

1st Jan Cash $9594415 -

Bond payable discount $405585

Payable bond $10000000

(2) Arrange the entry to report the first half yearly interest payment

For report semi-annual interest charges, departmental interest cost, credit discounts on bonds payable as well as credit cash as can be seen here:

Date Account title Debit Credit

30th June Interest expense $390559 -

Bond payable discount - $40559

Cash (10000000×3.5%) $350000

(3) Arrange the entry to report the Second half yearly interest payment

For report semi-annual interest charges, departmental interest cost, credit discounts on bonds payable as well as credit cash as can be seen here:

Date Account title Debit Credit

31st Dec Interest expense $390559 -

Bond payable discount - $40559

Cash $350000

(B)...

Evaluate the sum of first year bond interest.

Particulars Amounts

Interest expense (350000+350000) $700,000

Amortized discount (40559+40559) $81,117

For the first year, Interest expense $781,117

(C)...

The corporation sold the bond for $9,594,415 with a maximum interest of $10,000,000. That would be the $405,585 bond is sold cheaply. The debt are heavily discounted because bond market value is greater than that of the coupon price mostly on debt.

8 0

3 years ago

The employees at Violet Inc. are required to complete their work and leave the office premises by 6:00 p.m. Team outings are org

earnstyle [38]

Answer: Norms

Explanation:

According to the given scenario, the violet Inc are basically organized the team outing every month for their employees and the company are expected from every employee to be present in the outing.

The given scenario is basically exemplifies the norms as it refers to the attitude and also the behavior. The norms is one of the social values that helps for developing the personality and the human behavior.

Norms is basically defined the standards or the rules for the human on the basis of their attitude and behavior.

Therefore, Norms is the correct answer.

4 0

3 years ago

Phillips Equipment has 80,000 bonds outstanding that are selling at par. Bonds with similar characteristics are yielding 7.5%. T

ollegr [7]

Answer:

A) 10.15%

Explanation:

Cost of equity (Re) = 14.06% or 0.1406

cost of preferred stock (Rp) = 7/65 = 0.10769

cost of bonds (Rb) = 7.5% or 0.075

outstanding shares = 2.5 million shares x $42 = $105 million

bonds outstanding = $1,000 x 80,000 bonds = $80 million

preferred stock = $65 x 750,000 = $48.75 million

corporate tax rate = 38% or 0.38

total market value of equity + debt (in millions) = $105 + $48.75 + $80 = $233.75

WACC = [(outstanding shares / total market value) x Re] + [(preferred stock / total market value) x Rp] + {[(bonds outstanding / total market value) x Rb] x (1 - tax rate)}

WACC = [($105m / $233.75m) x 0.1406] + [($48.75m / $233.75m) x 0.10769] + {[($80m / $233.75m) x 0.075] x (1 - 0.38)}

WACC = 0.06316 + 0.02246 + 0.01591 = 0.10153 or 10.15%

6 0

3 years ago

Peggy offers to sell Shelby a purebred Scottish terrier puppy for $800. Shelby and Peggy do not discuss the dog's ancestry, but

ladessa [460]

Answer:

a. No, because Shelby made a mistake about the dog's value, not a mistake about a material fact.

Explanation:

Peggy made an offer to sell the dog for $800, they didn't discuss the dog's ancestry and Shelby wrongly assumed the dog was from champion lines and agreed to buy the dog for $800.

Based on further investigations, she discovered the dog was worth just $200.

She cannot rescind the contract because she wrongly assumed the dog's value not an error about à material fact. Peggy sold the dog at her own rates and Shelby bought the dog while wrongly assuming the value, so she cannot cancel the contract based on that.

6 0

3 years ago

Alaska Mining Co. acquired mineral rights for $67,500,000. The mineral deposit is estimated at 30,000,000 tons. During the curre

Reil [10]

Answer:

a. Determine the amount of depletion expense for the current year.

To find the depletion expense, we use the following formula:

Depletion

Expense = ( Cost - Salvage value / estimated n of units) x n of units extracted

Because we are not given any salvage value in the question, we will assume the salvage value is 0.

Plug the amounts into the formula to find the answer:

Depletion

Expense = (67,500,000 - 0 / 30,000,000) x 4,000,000

= 9,000,000

b. Journalize the adjusting entry on December 31 to recognize the depletion expense.

Account Debit Credit

Depletion Expense $9,000,000

Accumulated Depletion $9,000,000

3 0

3 years ago