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Otrada [13]
3 years ago
13

A bank's commitment (for a specified future period of time) to provide a firm with loans up to a given amount at an interest rat

e that is tied to a market interest rate is called
A) credit rationing.B) a line of credit.C) continuous dealings.D) none of the above.
Business
1 answer:
sladkih [1.3K]3 years ago
8 0

Answer:

credit rationing

Explanation:

Credit rationing is a situation in which borrowers give out a fixed amount of loan to lenders for a specified time at a rate tied to the market interest rate. In this situation, loans do not exceed a certain amount from the borrower no matter what attractive offers are given by the lenders to be able to get a larger loan amount. This is done by the borrower becasue the borrower is earning maximum profits from interest rates and also  is a means to maintain equilibrum between loan funds and loan demands.  

Cheers.

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Peroni Corporation sold a parcel of land valued at $300,000. Its basis in the land was $250,000. For the land, Peroni received $
Reptile [31]

Answer:

Correct option is C.

<u>$25,000, $25,000.</u>

Explanation:

Gross profit on sale = (300,000-250,000)/300,000 = 16.67%

Gain recognized in:

Year 1 = 150,000 * 16.67% = 25,000

Year 2 = 150,000 * 16.67% = 25,000

3 0
3 years ago
You are CEO of Eastco, and you recently paid $58,000 or about 2x revenue (well under industry average) to purchase Westco, which
jeka57 [31]

Answto be honest I really don’t know er:

Explanation:

4 0
3 years ago
The gross profit method of inventory valuation is not valid when a. there is substantial increase in the quantity of inventory d
lukranit [14]

Answer:

The gross profit method of inventory valuation is not valid when

c. the gross margin percentage changes significantly during the year.

Explanation:

Gross Profit Method:

It is such method that is used to determine the value of ending inventory in a specific period.

  • The option a, b and d are valid as this method is used when there is substantial increase in the quantity of inventory or in the cost of the inventory during the year. Moreover, it is also used to calculate the amount of ending inventory that is effected by a disaster such as fire, theft etc.
  • The option c is not valid because it is not used when the gross margin percentage changes significantly during the year as gross profit method is only used to determine the amount of an ending inventory.

6 0
3 years ago
What are the different elements of working capital and explain actions that Management of a business entity might take to reduce
faltersainse [42]

The different elements of working capital are <u>current current asset and current liabilities</u>. The management of a business entity might take <u>ratio analysis</u> to reduce the cycle.

Working capital management assists in sustaining the smooth operation of the net operating cycle, otherwise called the cash conversion cycle.

<h3>What is working capital management?</h3>

Working capital management is a business strategy formulated to ensure that an organisation functions efficiently by overseeing and utilizing its current assets and liabilities to their most effective use.

Therefore, learn more about working capital management: brainly.com/question/28287025

#SPJ1

4 0
1 year ago
Johnson Waterworks Corporation provides plumbing services. Transactions during the first year of operations are provided below.â
lisov135 [29]

Answer:

$ 26,100

Explanation:

Given:

Cash received = $13,000

Amount Paid for equipment to be used for plumbing repairs = $1,500

Amount borrowed = $10,000

Amount paid in rent for the year = $400

Amount paid for plumbing supplies = $300

Amount received for completing a plumbing repair = $3,400

Plumbing supplies left at the end of the year = $400

Now,

the total cash = Total Amount received -  Total Amount paid

or

The total cash = ($ 13000 + $ 10000 + $ 3400) - ($ 1500 + $ 400 + $ 300)

or

The total cash  = $ 24,200

Now

the assets from equipment = $ 1,500

Thus,

the total assets at end of the first year = The total cash + the assets from equipment  + Plumbing supplies left at the end of the year

or

The total assets at end of the first year = $ 24,200 + $ 1,500 + $ 400

or

The total assets at end of the first year = $ 26,100

5 0
3 years ago
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