All categories

3 years ago

What statement about minimum payments is incorrect

Business

1 answer:

Oksana_A [137]3 years ago

3 0

"If you send in the minimum payment, you will be charged a late fee."

This is an INCORRECT statement, because you will not be charged a late fee just for making the minimum payment. Minimum payments are not a good idea because you will be charged interest on the remaining amount and will have a harder time paying off the balance, but you will not be charged a late fee.

You might be interested in

Allowance for Doubtful Accounts has a credit balance of $500 at the end of the year (before adjustment), and bad debt expense is

andrew11 [14]

Answer:

The correct answer is c) $9,000

Explanation:

If net credit sales are $300,000 and bad debt expense is estimated at 3% of net credit sales.

$300,000 x 3%= $9,000

$300,000 x 0.03= $9,000

The amount of the adjusting entry to record the estimated uncollectible accounts receivables is $9,000

7 0

3 years ago

The following data are taken from the unadjusted trial balance of the Westcott Company at December 31, 2017. Complete the worksh

Alex17521 [72]

Answer:

The total of adjusted trial balance debit and credit side is $159 after posting the given transactions. The sheet is attached with the full working showing both of the trial balances - un-adjusted and adjusted one.

Explanation:

Following journal entries were posted in the trial balance to adjust it.

Transaction a:

Debit: depreciation expense $3

Credit: accumulated depreciation $3

Transaction b:

Debit: salaries expense $6

Credit: accrued salaries $6

Transaction c:

Debit: Unearned revenue $12

Credit: Revenue $12

When unearned revenue is earned, it is removed from unearned revenue by debiting it and then it is credited to the revenue for the period.

Transaction d:

Debit: supplies expense $9

Credit: supplies $9

Transaction e:

Debit: insurance expense $15

Credit: Insurance prepaid $15

When the insurance is expired, it is deducted from the prepaid insurance by crediting it from prepaid insurance account and it is debited to insurance expense account.

Download docx

3 0

3 years ago

Your friend Wanda established her gourmet dog treat business, Salty Pawz, using personal funds, since she initially sold her pro

denpristay [2]

Based on the advantages and disadvantages for each type of financing mentioned below, the best method for financing the expansion for Wanda's business is taking a loan (e.g. 1 year).

Take a term loan (e.g. 1 year)

A term loan is best described as an amount provided by the bank for a fixed amount and a agreed payment schedule with an interest rate either fixed or floating.

The main advantage of a bank loan is that it would not be repaid on demand instead it would be paid back as per schedule within a period of 1 to 10 years. Another advantage is that you would only have to pay the bank the interest rate and not the company's profit or share.

The disadvantage is that when loans are taken, then the amount (principal) and interest is to be repaid even if the loan is not being used. Another possible disadvantage is that a loan can be obtained if you have any asset (such as a house or car) to be kept as security. This is a guarantee in the likely event the bank's loan is not repaid on time.

Look for investors to fund her business in exchange for ownership in the company

This means finding individuals/institutions to provide financing as capital to be used in business for expansion.

Unlike a bank loan, here the investors accept the risk that if the business fails then their financing would be lost. Therefore, if the business ends up in losses then the amount is not required to be returned to their respective financiers. Another advantage is that you don't require any credit history to earn financing through investors.

The main disadvantage is that the sharing (profits) are divided between multiple investors based on their investment or as per their agreed sharing ratio. Moreover, the new investors might prefer to take more risks for a business to grow and which means that the stakes are always high.

In conclusion, Wanda is working on a small business and which is expanding at a slow rate with the risk being kept at a bare minimum. In which case taking a loan with amount and duration being set at a point where she would be able to return the loan acquired, is a better financing option for Wanda's business.

Read related link on:

brainly.com/question/18403244

6 0

3 years ago

What happens when you do not make a decision?

DENIUS [597]

Making decisions are always an important part. But failure in making decision may cause something unexpected. in most of the time a right decision at right time helps a lot... so for making a good decision one should follow some steps- like what are the good aspect if someone take this decision and what are the negative impact of this decision and if the probability of positiveness is more... than one should take that decision.. and if someone have confusion between what to do? and have to decide which decision to take among many ideas in mind one should do the same steps but this time he/she should write them in a page for each decision a single page and than take the one which is prominent..

4 0

3 years ago

Read 2 more answers

How does good health contribute to career success?

Dahasolnce [82]

It allows for one to live a healthier, happier, positive, successful life. Good health permits a stronger body and therefore better performance in the work place and an overall sense of optimism.

xx :)

7 0

3 years ago