Answer:
The entry will be,
Cash 461461 Dr
Discount on Bonds Payable 18539 Dr
Bonds Payable 480000 Cr
Explanation:
The bonds are being issued at a discount because the rate of interest offered by the bonds is less than that is prevailing in the market. Thus, the bonds will be issued at a discount of,
Discount on Bonds Payable = 480000 - 461461
Discount on Bonds Payable = 18539
The entry will be to record the receipt of cash by debiting the cash account by 461461 and debiting the discount on bonds payable by 18539 and recording a credit against these debits of 480000 as bonds payable
Answer:
D
Explanation:
Economic theory provides economists with a common language and way of thinking about how the world works
Is a set of definitions, postulates, and principles assembled in manner that helps make cause-and-effect relationships clear in economics?
Is like a guidebook in that it points out what to look for
Answer:
Saving can only be done in person. Investing can be done both in-person and online.
Explanation:
Saving refers to keeping some funds aside for use during emergencies. Individuals and institutions also save as a way of accumulating funds for a specific intention. Banks and other deposit-taking institutions offer saving services to pool funds and lend them for investment and consumption.
Saving will attract lower interest rates, sometimes below the inflation rate. Banks offer lower rates on saving and charges a higher interest rate to borrowers to make profits. Because saving offer lower returns, they are suitable for short-term periods. Savings are relatively safer than investment.
Investments offer higher returns but have a higher risk. Due to their price volatility, investments are suited for the long-term to safeguard against price fluctuations.
Answer:
The answer is undercapitalization
Explanation:
It is evident that the business is undercapitalized. Undercapitalization is a situation when a company/firm does not have enough or the needed funds to run the business operations or pay his creditors.
Angelo is undercapitalized because her sales are not generating the needed cash flows coupled with her inadequate capital. So she needs to raise enough capital or develop new strategy to increase her sales.
