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4 years ago

You would be making a wise decision if you chose to:________.

Business

2 answers:

Korolek [52]4 years ago

7 0

Answer:

c. accept the loan with the lower effective annual rate rather than the loan with the lower annual percentage rate.

Explanation:

In the above scenario it will be a good financial decision to choose a loan with lower effective rate than the one with lower percentage rate.

Effective rate is defined as the real interest rate on a loan or the actual amount that is to be repaid annually on a loan. It gives a truer picture of cost of borrowing money.

Percentage rate is interest paid on a loan expressed as a percentage of the total amount collected. It usually includes various fees and charges collected by the lender. So it is not a true reflection of the cost of borrowing

AlekseyPX4 years ago

5 0

Answer:

c. accept the loan with the lower effective annual rate rather than the loan with the lower annual percentage rate.

Explanation:

The effective annual rate is the actual rate of interest that you will have to paid on the loan. The effective annual rate takes into account the compounding interest over the loan's period of time.

An annual percentage rate can be either nominal (without taking compounding into account), or effective. For this reason, to make sure that you are making the most rational decision, you should take the loan with the lower effective annual rate, because the lower annual percentage rate may be either nominal or effective.

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Farmer Corp. owned 20,000 shares of Eaton Corp. purchased in 2009 for $300,000. On December 15, 2012, Farmer declared a property

Evgen [1.6K]

Answer:

Debited to Retained Earnings of $500,000.

Explanation:

At the time of declaration of the dividend, the journal entry is recorded which is shown below:

Retained earning A/c Dr $500,000

To Dividend payable A/c $500,000

(Being cash dividend declared)

On the declaration date, the dividend amount is recorded. So while recording we debited the retained earning account and credited the dividend payable account

All other information which is given is not relevant. Hence, ignored it

3 0

3 years ago

Oooops! I just found out that Florida is not next door. In fact, it will cost me $600 just to get to Florida, regardless of how

Scorpion4ik [409]

Answer: investigate the opportunity cost of the types of transport you can use to get to Florida

Explanation:

8 0

4 years ago

One of your clients is a sophisticated 40 year old investor and has recently changed jobs. The client is considering rolling ove

elena55 [62]

Answer:

The answer is: The customer's IRA assets should be considered as part of the customer's total portfolio and risk profile.

Explanation:

The branch office manager (BOM) should advice the registered representative (RR) that IRA assets are generally invested conservatively. But that is not always the case, since you must consider the customer's total investment portfolio. In this case, the investor has already $150,000 invested conservatively, so if he decides to invest $100,000 more aggressively, then it's OK. The customer's IRA assets should be considered as part of the customer's total portfolio and risk profile.

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4 years ago

A potential negative outcome of budgeting is that multiple choice 2 it can be a motivating force when guidelines are followed. e

lions [1.4K]

Answer:

employees may understate sales budgets and overstate expenses.

Explanation:

A budget is a financial plan used for the estimation of revenue and expenditures of an individual, organization or government for a specified period of time, often one year. Budgets are usually compiled, analyzed and re-evaluated on periodic basis.

The first step of the budgeting process is to prepare a list of each type of income and expense that will be integrated or infused into the budget.

A potential negative outcome of budgeting is that employees may understate sales budgets and overstate expenses. Thus, this would go a long way to alter or affect the budget plan.

5 0

3 years ago

Perpetual Inventory Using FIFO Beginning inventory, purchases, and sales data for prepaid cell phones for May are as follows: In

tangare [24]

Answer:

First sale = $34720

Second sale = $29760

Third sale = $14880

Inventory balance after 1st sale = $366480

Inventory balance after 2nd sale = $346720

Inventory balance after 3rd sale = $331840

Explanation:

Under the FIFO method of inventory measurement, inventory that arrives and/or is purchased in the beginning should be sold first, which means the latest inventory is kept therefore the cost of ending inventory under FIFO is greater than other inventory measurement methods due to latest prices which keep increasing as a result of inflation.

1120 units of inventory is sold first on May 12, the inventory is sold from the inventory of May 10, the cost of this sale is as follows:

First sale =1120 × $31

First sale = $34720

From the opening inventory 10480 units are left (11600-1120).

Inventory balance = (10480 ×$31) + (800×$33) + (720 ×$35)

Inventory balance = $366480

The second sale is of 960 units on May 14.

(Note: under FIFO until initial units are fully sold no later inventory is sold before them).

Second sale = 960 × $31

Second sale = $29760

Inventory balance = {9520×$31)} + (800×$33) + (720 ×$35)

Inventory balance = $346720

The third sale is of 480 units on May 31.

Third sale = 480 × $31

Third sale = $14880

Inventory balance = {9040×$31)} + (800×$33) + (720 ×$35)

Inventory balance = $331840

4 0

4 years ago