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3 years ago

Indicate the correct term to each description of a financing agent, activity, setting, or instrument.

Business

1 answer:

Brilliant_brown [7]3 years ago

5 0

Answer:

Indication of correct terms:

a. The reward a saver expects on loaned funds: 3. Interest rate

b. The cost a borrower pays for loaned funds: 3. Interest rate

c. The -difference between the real interest rate and the nominal interest rate: 1. Inflation rate

d. The percentage of disposable income that is kept as personal savings: 2. Saving rate

e. The term that indicates most people need to be incentivized to save: 4.Time preference

f. The result consumption exceeding income over a particular period: 5. Dissaving

Explanation:

1. Inflation rate is the ratio of the change in the prices of goods when compared with an indexed figure.

2. Saving rate is the ratio of savings kept behind from disposable income earned. It shows the ratio of income not consumed when earned.

3. Interest rate is the ratio of the amount that is saved or loaned out that people would receive in order to incentivize them to save or lend and prefer the same amount today and in future.

4. Time preference is a term that shows that people value an amount of money today more than they value the same amount received in future. So, they would rather spend that amount today than spending it tomorrow.

5. Dissaving is spending more than income and even tapping into or consuming from the savings account.

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Expenses ______ retained earnings; therefore, to increase any expense, one would ______ the expense account.

Liula [17]

Expenses decreases retained earnings; therefore, to increase any expense, one would debit the expense account

What does retained earnings mean?

Retained earnings are profits retained in the business for reinvestment and for expansion purposes, in essence, expenses would reduce the retained earnings, the higher the expenses, the lesser the retained earnings become.

From a double entry point of view, an increase in expenses would be debited to expense account and a decrease is credited instead.

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2 years ago

Monument Health buys $400,000 of a particular item (at gross prices) from its major supplier, Cardinal Health, which offers Monu

Anna007 [38]

1. The amount of the free trade credit that Monument Health obtains from Cardinal Health is <u>$400,000.00</u>.

2. The total amount of trade credit offered by Cardinal is <u>$404,000.00</u>.

3. The approximate annual cost of the costly trade credit is <u>72%</u>.

4. <u>No.</u> Monument Health should not replace a portion of the trade credit with a bank loan.

5. If the bank loan is used, the trade credit should be replaced by $133,333.00.

<h3>What is trade credit?</h3>

Trade credit is a business arrangement that allows the buyer to buy goods in exchange for later payment.

Giving trade credit is costly to the seller but profitable to the buyer, especially with the offer of cash discounts.

<h3>Data and Calculations:</h3>

Gross prices = $400,000

Terms of trade = 1/5, net 15

Bank loan = $400,000

Loan interest rate = 12%

Days per year = 360 days

Cost of Trade Credit for 5 days = $4,000.00 ($400,000 x 1%)

Annualized cost = 72% (1%/5 x 360)

Cost of bank loan for 10 days = $1,333.33 ($400,000 x 12% x 10/360)

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2 years ago

7. What is the advantage of binding things as early as possible? What is the advantage of delaying bindings?

denpristay [2]

Answer:

1. early binding enhances performance

2. late binding gives flexibility

Explanation:

this is generally the advantage of early binding. early binding gives room for better efficiency

.This is because it would be needless to reanalyze every time whenever something is declared. Early binding is for performance.

meanwhile late binding is known to have better flexibility and gives room for more polymorphism. this binding gives extension to runtime.

3 0

3 years ago

For daily work production, several examiners can work together in a large open area, as long as they all have ________ level of

Tanzania [10]

Answer:

the same

Explanation:

When examiners in a large open area have the same level of authority and access, work production gives room for more efficeincy and increased production. This means that everyone is on the same level and can do everything needed without awaiting authorization and clearance which could slow down production.

Cheers.

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3 years ago

Annette drove through an intersection without looking and hit Vincent's car that he had driven into the intersection without obe

Papessa [141]

Answer:

$70,000

Explanation:

Under a Comparative negligence theory,

When an accident occurs, the blame or fault is determined by the contributions of each party towards the accident.

In a pure comparative negligence theory, the victim or plaintiff who files a case, sue the other party and received some part of the damages and hence each party receives the amount related to their damages minus the part of their fault.

In our case, Annette fault contributes 30% to the collision and determined that her total loss was $100,000.

So, Annette will recover:

= Total loss - 30% of fault

= $100,000 - 0.3 × $100,000

= $100,000 - $30,000

= $70,000

4 0

3 years ago