Answer:
The statement is true
Explanation:
Credit card is the card which provide the benefit to the people to purchase the items without cash. In short, it is that card which the person could use when the person is short of cash or does not have cash while purchasing the item.
The benefit which is provided, it is against the interest which is being charged from the day the amount is spent till the date the whole amount (which is principle amount plus the interest amount) is paid to the company.
So, taking the cash in advance from the credit card would not be a wise decision as the interest begin from the day the advance is taken.
Answer:
Present value of payments to the bank=938.51
Explanation:
The present value of the payment to the bank are an ordinary annuity i.e equal payments made at the end of each year for 16 years.
The Present value of an ordinary annuity is calculated as follows:
![Present value =PMT*\frac{[1-(1+i)^-^n]}{i}](https://tex.z-dn.net/?f=%20Present%20value%20%3DPMT%2A%5Cfrac%7B%5B1-%281%2Bi%29%5E-%5En%5D%7D%7Bi%7D)
where PMT is the annual payment made at the end of each year=$100;
i is the interest rate or discount rate = 4%,
n=the number of years the periodic payment of 100 is to be made=12
Present value of payments to the bank = ![ 100*\frac{[1-(1+0.04)^-^1^2]}{0.04}](https://tex.z-dn.net/?f=%0A100%2A%5Cfrac%7B%5B1-%281%2B0.04%29%5E-%5E1%5E2%5D%7D%7B0.04%7D)
= 938.51
Answer:
<u>Assertion 1)</u> Existence or occurrence: the company must provide the loan documents along with proof that they actually purchased the stocks and bonds using the loan money. It would also help to have a document explaining why the building site couldn't be acquired as planned.
<u>Assertion 2)</u> Rights and obligations: all the legal paperwork regarding the loan, the mortgage on the existing plant and the stocks and bond paperwork must be presented.
<u>Assertion 3)</u> Completeness: all the relevant information must be given to the auditor including building titles, inventories, equipment, cash receipts, etc. The auditor should be allowed to physically visit the plant and confirm the documents.
<u>Assertion 4)</u> Valuation and allocation: information regarding the current market values of the building, inventories and equipment should be given to the auditor. The auditor should be able to confirm if the depreciation values and market values are consistent. Also, the auditor must have access to accounts receivables and should be able to analyze them to check for any inconsistencies.
<u>Assertion 5)</u> Presentation and disclosure: the auditor should be able to check expense accounts and capitalization accounts, and analyze them. E.g. equipment or machinery repairs must be treated as expenses and not capitalized.
Answer:
a. Net Sales = (300 units - 10 units return) * $20 each
Net Sales = 290 units * $20 each
Net Sales = $5,800
b. Liability for refunds = (10 units expected to be returned * $20 each)
Liability for refunds = $200
c. Cost of Goods Sold = (300 units - 10 return) * $12 per unit
Cost of Goods Sold = 290 units * $12 per unit
Cost of Goods Sold = $3,480
Answer:
Personal objective.
Explanation:
Jake, who runs a health food store, finds it is rewarding to interact with customers who like to eat organic and health food. Hence, he is recognized in the local community. P<u>ersonal objective </u>of retailing that Jake emphasize by his practice.
Personal objective are the retail goal set by retailer, who use skill and domain knowledge of retail to impress other and gain respect from peer group.
There are three type of personal objective in retailing:
- Self gratification
- Power or authority.
- Respect.
