Example of a debt-funding source?

You've written a check to Goodwill Supply, and the check has been lost. What should you do? A. Stop payment on the first check;

Lelu [443]

Answer:

A. Stop payment on the first check; then write a second one.

Explanation:

There are certain rules and procedures in banking system. If any check written is lost, then firstly the check shall be made invalid the one which is lost.

To make it invalid, stop payment can be done. Stop payment basically converts the check into a mere paper, with no validation, even if such check is presented no payment is made against it.

Further by issuing check you create a liability that you owe some money as against the party in consideration on check.

Therefore, after stop payment a new check shall be issued.

5 0

3 years ago

Crane Company is planning to sell 870000 units for $1.50 per unit. The contribution margin ratio is 20%. If Crane will break eve

HACTEHA [7]

Answer:

Crane Company is planning to sell 870000 units for $1.50 per unit. The contribution margin ratio is 20%. If Crane will break even at this level of sales, what are the fixed costs?

$261,000 would be the fixed cost

Explanation:

870000 X $1.50= $1,305,000

20/100= 0.2

0.2 X 1,305,000= $261, 000

7 0

3 years ago

uppose you buy a bond with a coupon of 7.8 percent today for $1,080. The bond has 5 years to maturity. Assume interest payments

Mariulka [41]

Answer:

45.58%

Explanation:

Rate of return is the expected gain or loss on an investment, over a specific time period. It is derived as a percentage of the investment's original value or cost.

ROR = [CV - IV]/ IV × 100

CV is the current value of the investment (value at the end of the investment period)

IV is the initial value of the investment.

Note also, the assumption that interest payments are reinvested.

At the end of year 1, interest payment is $1,164.24

End of year 2 - $1,255.05

End of year 3 - $1,352.95

End of year 4 - $1,458.48

End of year 5 - $1,572.24

[Interest rate - 7.8%]

ROR = (1572.24 - 1080)/1080 × 100

ROR = 45.58%

5 0

4 years ago

The expense recognition principle indicates: Multiple Choice the ordering of current assets and current liabilities on the balan

Nesterboy [21]

Answer:

when costs are recognized as expenses on the income statement.

Explanation:

The expense recognition principle is an accounting principle which is typically used on accrual basis accounts and it states that expenses incurred by an individual or business entity should be recognized and matched in the same period with respect to the revenues they are related to.

The expense recognition principle indicates when costs are recognized as expenses on the income statement.

For instance, company XYZ purchases a property worth $90,000 in June, it was then sold in July for $250,000. Based on the expense recognition principle, the $90,000 cost shouldn't be recognized by company XYZ as an expense until July, when the related revenue would be recognized also. Else, if recognized, its expenses would be overstated by $90,000 in June, and consequently understated to the tune of $250,000 in July.

Additionally, the expense recognition principle helps business owners to calculate their taxes and profits or losses properly.

6 0

3 years ago

John Den Bear Company had a $450,000 beginning balance in Accounts Receivable and a $18,000 credit balance in the Allowance for

vlada-n [284]

Answer:

The net amount of receivables included in the current assets at the end of the year is $462,000

Explanation:

Beginning Balance of Accounts Receivable = $450,000

Add: Credit sales for the period = $1,800,000

Less: Cash collected = $1,770,000

Less: Amounts Written Off = $12,000

Ending Balance of Accounts Receivable = $468,000

Beginning Balance of Allowance Account = $18,000

Less: Amounts Written off = $12,000

Ending Balance = $6,000

Net amount receivable included in current assets

Accounts receivable = $468,000

Less: Allowance account = $6,000

Net Receivables = $462,000

8 0

3 years ago