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3 years ago

What trade offs do you use when you use credit

1 answer:

5 0

When using credit, you are giving up spending in the future to spend money now. This trade off involves costs (interest). So borrowing money from your future to buy now, will cost you more in the long run that paying cash.

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A truck costs $ 303 comma 000 and is expected to be driven 114 comma 000 miles during its fiveminusyear life. Residual value is

Anika [276]

Answer:

$90,900

Explanation:

Cost of truck = $303,000

Expected millage = 114,000 miles

Residual value = 0

Millage cover in first year = 34,000 miles

Depreciation is the systematic allocation of cost to an asset based on usage.

The depreciation of this truck is based on the millage covered. Hence the depreciation to be recognized in the first year

= (34,000/114,000) × 303,000

= 0.30 × 303,000 (intermediate calculations rounded to two decimal places)

= $90,900 (to the nearest dollar)

7 0

3 years ago

The innovation paradox implies that consistency in products and services provokes a tension with the need for new products. This

arsen [322]

Answer: A. Stability and change

Explanation:

The innovation paradox implies that consistency in products and services provokes a tension with the need for new products. This results in a conflict between

A) stability and change.

B) structure and culture.

C) rewards and metrics.

D) stability and metrics

The paralysis that occurs between sticking to existing products and services (stability) and the need for the development of new ones (change) is a direct effect of the innovation paradox which states that the more a firm pays attention to innovation, the less likely it will be to be successful at innovation. In other words, consistency in products and services provokes a tension with the need for new products. While stability enables change in that it supplies security and consistency, reserved knowledge and skills and enables commitment and the provision of resources for a better realization and actualization of change, change enables a firm to set up a new state of stability through variable mechanisms (innovation) This serves to assist an organization in reaching new stable stages with higher efficiency.

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3 years ago

On January 1, 2018, Brian Company purchased at par $831,000, 6 percent bonds issued by Laura Company to be held as available-for

Leno4ka [110]

Answer:

THE TRANSACTION DATE : December 31, 2018.

TRANSACTION: Record the trading securities at fair value.

ASSETS: - 26,400

LIABILITIES:

STAKEHOLDERS' EQUITY: -26,400

REVENUE/GAINS:

EXPENSES/LOSSES: $26,400

NET INCOME: - 26,400

THE TRANSACTION DATE : July 1, 2019.

TRANSACTION: Adjust to fair value.

ASSETS: $29,800

LIABILITIES:

STAKEHOLDERS' EQUITY: $29,800

REVENUE/GAINS: $29,800

EXPENSES/LOSSES:

NET INCOME: $29,800

RECORD THE SALE OF TRADING SECURITIES(ASSETS) = $0.

Explanation:

So, anything dealing with trading securities has to do with trading in which securities are held down for a period of time and then later the securities will be sold.

So, here are the categories for the transactions listed in the question above, assuming the securities are available-for-sale.

THE TRANSACTION DATE : December 31, 2018.

TRANSACTION: Record the trading securities at fair value.

ASSETS: - 26,400

LIABILITIES:

STAKEHOLDERS' EQUITY: -26,400

REVENUE/GAINS:

EXPENSES/LOSSES: $26,400

NET INCOME: - 26,400

THE TRANSACTION DATE : July 1, 2019.

TRANSACTION: Adjust to fair value.

ASSETS: $29,800

LIABILITIES:

STAKEHOLDERS' EQUITY: $29,800

REVENUE/GAINS: $29,800

EXPENSES/LOSSES:

NET INCOME: $29,800

RECORD THE SALE OF TRADING SECURITIES(ASSETS) = $0.

3 0

3 years ago

Knowledge Check 01 On February 13, a jewelry store sells an engagement ring with a sales price of $10,000 to a nervous young man

WARRIOR [948]

Answer:

Date Account Title Debit Credit

Feb 13 Cash $10,975

Sales $10,000

Sales Tax Payable $975

(10000 * 9.75%)

5 0

3 years ago

uestion 31 Oriole Company has the following inventory data: July 1 Beginning inventory 114 units at $19 $2166 7 Purchases 399 un

lina2011 [118]

Answer:

$7,714

Explanation:

The computation of the cost of good sold under LIFO method is shown below

But before that following calculations need to be done

Goods sold = Beginning inventory + Purchases - Ending inventory

= 114 + (399 + 57) - 190

= 380 units

Now 380 units sold would include 57 units of July 22 purchases and balance i.e. (380-57) 323 units of July 7 purchases

So, cost of goods sold

= (57 × 22) + (323 ×20)

= $7,714

7 0

3 years ago