D a is the correct answer I’m pretty sure
To record final annual interest and bond repayment:
2017
Mar 1
Bonds interest expense $25,400
Bonds payable $254,000
Cash $279,000
On March 1, 1997, the date of issuance, the entry is:
1997
Mar 1
Cash $254,000
Bonds payable $254,000
On each March 1 for 10 years, beginning March 1, 1997 (ending March 1, 2017), the entry would be (Remember, calculate interest as Principal x Interest Rate x Time)
Mar 1
Bond Interest Expense ($100,000 x 12% x 1) $25,400
Cash $25,400
Answer:
Circular flow diagram.
Explanation:
The circular flow diagram simplifies the interaction of two groups, firms and households, and allows us to make predictions about economic behavior.
The firm sells their goods and services in the market while the household buys these goods and services.
Hence, the circular flow diagram represents the interaction between the household and firms with respect to the market.
Answer: long-term relationships and commitments.
Explanation:
Just in time typically implies long-term relationships and commitment. It requires a good understanding of the supplier and the manufacturer in terms of the quantity and the swiftness with material delivery. When there is a misunderstanding between the manufacturer and the supplier, delivery cones to a halt. This is why there's a need for a long lasting relationship and commitment.
Answer:
A.) Firm B must have a higher ROE than first A.
Explanation:
Debt ratio is defined as percentage of a company's assets that is made up of debt and so it is calculated as a ratio of debt to assets of a company.
Interest expense is the amount that is paid to service a loan.
This implies that company B has higher loan portfolio than Company A.
Considering the accounting formula
Equity= Asset- Debt
So an increase in debt will result in a decrease in equity.
Return on equity= Net income/Equity
It follows that as debt increases and equity reduces, the ROE will increase since a shrink in the ROE denominator (Equity) will lead to an increase in the ratio.
