Answer:
A) Jennifer will experience negative externalities.
Explanation:
Externalities are essentially just the consequences of activities on unrelated third parties. There can either be positive or negative.
Jennifer being a serious student gives her a private benefit, but it also has a positive consequence for society as a whole (educational benefits). That would be considered a positive externality.
But with the question of the living situation - it would lead to a negative externality for Jennifer as the noise and distractions would negatively impact her studying.
Answer: D) Cash and carry wholesaler
Explanation: Cash and carry wholesaler is function that place in the wholesale field.It differs from the regular mechanism of retail, in this sector the goods are traded from wholesale field by paying extra payment for delivery, opting self- transportation etc.
The Rosy Sweets Treat's workers visit the Widget suppliers warehouse on monthly basis because they have opted for self transportation to carry the goods from warehouse to restaurant due to less space available for keeping the goods in restaurants and meet the huge amount of merit-in sales.
Other options are incorrect because agent is someone representing on behalf of other company, broker is the individual that sells and buys items for other party and drop shippers don't keep stock items with them rather ship them .Thus, the correct option is option(D).
The answer to this question is <span>Wherewithal to pay
In the wherewithal to pay concept, the</span><span> Income will be recognized in the period in which the company has the means to </span>pay<span> the tax on the income. Often times, company make their report to show a loss on purpose in order to postpone the tax payments</span>
Answer:
Answer is option C i.e. ensure a cash shortage does not cause an inability to meet current obligations.
Explanation:
Debt covenants can be understood as an agreement between the lenders and the borrower. There are certain terms that are to be considered by the parties of the agreement. One such term is the maintenance of a minimum level of net working capital so that when a company/organization that has borrowed the money runs bankrupt can meet its obligation to pay back the required amount to the lender on time. Therefore, maintenance of a minimum level of net working capital is to ensure that the cash shortage does not cause an inability to meet current obligations.
Answer:
The journal entry for the issuance and the proceeds of the note is shown below:
Explanation:
Cash A/c.........................Dr $600,000
Notes Payable A/c......Cr $600,000
The givens company received a amount of $600,000 from the bank, so cash is increasing and increase in cash is debited. Therefore, the cash account is debited. Whereas, the cash against a note payable, which increases the liability and any increase in liability is credited. Therefore, notes payable is credited.
