The following statements more accurately describe the transactions:
- The first transaction records the sale of accounts receivable to a factor, whereas the second transaction records a sale that was paid using a national credit card.
- The journal entry for the sale of receivables to a factor requires a debit to Cash (asset), a debit to Service Charge Expense (stockholders' equity), and a credit to Accounts Receivable (asset). Therefore, it affects two asset accounts and one stockholders' equity account. In contrast, the journal entry for a sale paid with a national credit card requires a debit to Cash (asset), a debit to Service Charge Expense (stockholders' equity), and a credit to Sales Revenue (stockholders' equity). Therefore, it affects one asset account and two stockholders' equity accounts. A sale made with a store credit card does not dispose of accounts receivable; instead, it increases Accounts Receivable and increases Sales Revenue.
<u>Explanation</u>:
The assets owned by the company are recorded in the form of account known as <u>asset account</u>. Capital expenditures are debited to an asset account, and the expenditure is said to be capitalized. If the owner of the business increases the assets amount, the asset account will also be increased.
<u>Equity account</u> illustrates the financial representation of the ownership of a business. The payment made by the owner to the business or the earnings that are generated by the business are considered as equity. As the equity funds come from different sources, the equity is stored in multiple types of accounts.
Answer:
The answer is C.
Explanation:
The coupon payment is annual, meaning it is being paid once a year.
N(Number of years/Number of periods) = 40(20 x 2)
I/Y(Yield-To-Maturity) = ?
PMT(coupon payment) = $40[(80÷2/100) x $1,000]
FV(Future value/Par value) =$1,000
PV(present value or market value) = -828
Now to solve this, lets use a financial calculator (e.g Texas BA II plus)
N= 40; I/Y = ?; PMT = $40; FV = $1,000; CPT PV = -828
The cost of debt is 5%
Note that this is for semiannual. The annual cost of debt is therefore, 10%(5% x 2)
Answer:
Option D.
Explanation:
Fiat money refers to currency that is issued by the government and which is not backed by any physical commodity, such as gold or silver, but rather by the government that issued it.
The value of fiat money is gotten from the relationship that exists between supply and demand and the stability of the issuing government. The value is not based on the worth of a commodity backing it as is the case for commodity money.
Most modern paper currencies are fiat currencies, including the U.S. dollar, the euro, and other major global currencies. One risk that fiat money faces is the printing of too many of a particular currency, which can contribute to hyperinflation.
Answer:
The correct answer is b) "The greater the degree of product variation, the greater is the excess capacity problem."
Explanation:
Excess capacity means that the demand for a stock is less than the quantity that the company probably could provide to the market.
- The greater the degree of product variation, the greater is the excess capacity problem.
- A lower scale of output than it has been designed for creates an excess of capacity.
