With homemade leverage, an investor is able to replicate a corporation's capital structure by borrowing funds and using those funds along with her own money to buy the company's stock. This is further explained below.
<h3>What is homemade leverage?</h3>
Generally, When an investment in a firm that does not use leverage is converted into the impact that leverage has on investment by using personal borrowing, this is an example of homemade leverage.
In conclusion, By utilizing borrowed money plus her own finances to acquire shares in a firm, an investor might "do her own leverage," or mimic the capital structure of a publicly traded company.
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Answer:
Journal entry
Explanation:
Before passing the journal entry we need to do the following calculations
Uncollected amount is
= $4,400 × 50%
= $2,200
Uncollected amount is
= ($4,400 - $2,200) × 0.03
= $2,200 × 0.03
= $66
So, the total amount is
= $2,200 + $66
= $2,266
Now the journal entry is
Bad debt expense $2,266
To Allowance for uncollectible accounts $2,266
(Being the uncollectible account is recorded)
Answer:
net income 4,385
Explanation:
The income statment will only include revenues and expenses account.
A revenue will be the gain realized from the business main activity or secondary like interst or rental revenues.
While expenses will be the cash erogation or losses iincurred in the business activities, their financing like interest expenses and other.
revenues 9,850
expenses <u> 5,465 </u>
net income 4,385
The loan is not an expense. It wil lbe the interest it generated but we aren't given with that information
The dividends also aren't an expense they represent the return to the investors.
Answer:
Corporation.
Explanation:
A business organized as a separate legal entity from its owners is a corporation.
A limited liability company (LLC) can be a corporation and basically it refers to a private company in which the owners are legally responsible for the company's debts but only to the amount of capital he or she has invested. The LLC can be referred to as a hybrid business entity that combines the limited liability-shield of a corporation with the pass-through taxation of a sole-proprietorship or partnership business.
In the United States of America, the owner of a LLC is not legally liable for the company's liability or debts.
Additionally, it is very important that in the decision-making process, an organization consults a variety of its key or essential staffs such as managers, directors, stakeholders and executives. Furthermore, when the decision making process has been completed and a position taken, it is necessary that the organization communicates in clear and concise terms the details or parameters which influenced the choice to its audience such as investors, customers, employees etc.
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.
