Answer:
d. Provides a guarantee of payment from the buyer, reducing the credit risk to the seller
Explanation:
A letter of credit is a document that guarantees a seller of payment from the buyer. It is drafted and issued by a bank assuring the seller of timely and full payment. A letter of credit is applied mostly in international trade where the buyer and seller hardly meet or know each other.
Banks issue a letter a credit against cash or other securities. Should the buyers fail to make payment, a letter of credit assures the seller that the bank will take responsibility for the payment. Banks usually charge a fee for issuing letters of credit.
Answer: 1.37
Explanation:
The basic earnings per share" if after-tax earnings are $780,000 would be calculated as the after tax earning divided by the outstanding shares. This will be:
= $780000 / $570000
= 1.3684211
= 1.37
Answer:
C. The government can change the reserve
ratio.
Answer:
Interest earned on an investment is considered to be tax free until you sell the investment.
Explanation:
Time Value of Money is Simply know as to the truth or fact that money received today is worth more money received next year or the year after it.
Future Value is the rate or amount of money an investment will grow to over some period of time at some given interest rate. Investment is simply known as the buying or purchase of assets with the aim of increasing future income and interest.
After-tax rate of returns of investments depends on Before-tax rate of return., When investment income and gains are taxed,Taxed annually, e.t.c.
Answer:
Gain on disposal of $78,000
Explanation:
The computation of the disposition of the machine is shown below:e
= accumulated depreciation + insurance received based on the replacement cost of the machine - Destroyed cost of the machine
= $60,000 + $150,000 - $132,000
= $78,000
Since the machine was replaced so accumulated depreciation should be included and the destroyed cost of the machine should be deducted.
The $78,000 record gain disposal of the machine
