Answer:
B. Notes Receivable.
Explanation:
Since the company is signed an agreement for lending out of its customers for $200,000 that could be repaid in one year at 5% interest so it is not revenue not note payable and also not account receivable
Therefore it is a note receivable
Hence, the option b is correct
and, the same is to be considered and relevant
Answer:
6.50 Years
Explanation:
The computation of the payback period of the investment is shown below;
Total cash outflow is
= $15,000 + $8,000
= $23,000
Now the Cash Inflow in all 6 years is
= $1,000 + $2,000 + $2,500 + $4,000 + $5,000 + $6,000
= $20,500
Cash inflow in Year 7 is $5,000.
But Cumulative Cash flows from Year 1 to Year 7 is
= $20,500 + $5,000
= $26,500
This amount is more than Initial Investment i.e. $23,000.
So our Payback period is between 6 & 7 years i.e.
= 6 + ($23,000 - $20,500) ÷ 5000
= 6.50 Years
Answer:
Sole proprietorship
Explanation:
The characteristics of Sole Proprietorship includes unlimited liability and the owner of the business runs the business. In this case, the owner Holly is legal owner of the business and is involved in the marketing and production of the business. As the business is not registered as a company, the liability is unlimited which meets the criteria of sole proprietorship.
Answer:
Relevant Range
Explanation:
The production range between 120000 and 150000 is called the "Relevant range".
This production range is called Relevant range because the expected fixed cost will not vary if the production is in the range 120000 to 150000.
Also, the for increase in production more than 150000 will lead to the extra cost or if the production is less than 120000 the company may need to reduce its fixed cost.
C is correct.
As a result of a tariff, prices for domestic steel consumers go up so D is false. Option B is false because it does not make the market fair for everyone as now domestic producers can charge a higher price since foreign competition is being excluded. Since B, D are false it would make sense that A is also untrue as consumers are now suffering while it is the producers who benefit.
