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3 years ago

What best determines whether a borrower's investment on an adjustable rate loan goes up or down?

Business

1 answer:

Elden [556K]3 years ago

7 0

Answer:

c.a market's condition

Explanation:

The best option that determines the borrower investment would go down or up is market conditioned

Market condition is refer to the variation in the stock market. There are many factor that determine the condition of rate loan. it is always not one factor that decide the current situation. The market condition is always inversely proportional to rate loan. which indicates whatever be the conditioned of the market is, the loan rate would be opposite to that.

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For the past five years, the RS Company has produced and sold electronic magnets to chemistry labs throughout the United States.

mezya [45]

Answer:

Explanation:

For a cost to be relevant it has to be futuristic and not past

A relevant cost can be said to be a cost or costs that will be incurred as a result of a particular make or buy decision, and which will change in the future as a result of that decision.

A) The machinery used to produce the magnet was purchased five-years ago for $500,000.

IRRELEVANT

A relevant cost is a cost or costs that will be incurred as a result of the decision, and which will change in the future as a result of that decision. In this case, the machine has already been bought.

B) Four of the employees who produce magnets would be reassigned to the magnifying glass division.

RELEVANT

A relevant cost is a cost or costs that will be incurred as a result of the decision, and which will change in the future as a result of that decision. In this case, the employees will be reassigned which implies that the cost of their salaries will be a cost to be borne when they employ new hands.

C) The space now used to produce the magnets would be used to eliminate the need to rent warehouse space.

RELEVANT

A relevant cost is a cost or costs that will be incurred as a result of the decision, and which will change in the future as a result of that decision. In this case, the space will be reassigned which implies that the cost of their rent will be a cost not to be saved.

D) Sales volume (units) is estimated to drop by 50% once the competitor becomes fully operational.

RELEVANT

A relevant cost is a cost or costs that will be incurred as a result of the decision, and which will change in the future as a result of that decision. In this case, the revenue will be reduced by 50% which implies that the inflow of sales will be half the original amount going forward. This is futuristic and hence relevant

6 0

3 years ago

Required information Exercise 6-9A Record transactions using a perpetual system (LO6-5) Skip to question [The following informat

Korolek [52]

Answer:

Littleton Books

Journal Entries:

May 2 Debit Inventory $3,300

Credit Accounts Payable (Readers Wholesale) $3,300

To record the purchase of books on account, terms, 1/10, n/30.

May 3 Debit Freight-in $200

Credit Cash Account $200

To record the payment of freight costs for books purchased from Readers.

May 5 Debit Accounts Payable (Readers Wholesale) $400

Credit Inventory $400

To record the return of books.

May 10 Debit Accounts Payable (Readers Wholesale) $2,900

Credit Cash Discount Received $29

Credit Cash Account $2,871

To record the settlement of account.

May 30 Debit Accounts Receivable $4,000

Credit Sales Revenue $4,000

To record the sale of books on account.

May 30 Debit Cost of goods sold $2,900

Credit Inventory $2,900

To record the cost of goods sold.

Explanation:

The journal entries in Littleton Books' accounting records show the accounts to be debited and credited as they occur on a daily basis.

6 0

3 years ago

The adjusting entry to adjust supplies was omitted at the end of the year. This would affect the income statement by having expe

creativ13 [48]

Answer:

This would affect the income statement by having expenses

c. understated and therefore net income overstated revenues

Explanation:

Adjusting Entry:

It is such entry which is added at the end of the fiscal period in order to make the income statement accurate.

Overstated:

In Accounting, overstated amount means that amount is greater than the true amount.

Understated:

In Accounting, if an amount is less than the true amount then it is known as understated.

As in our case, the adjusting entry for supplies was not added so in this way expenses became understated means they become less as compared to actual expenses. Therefore, revenues overstated.

5 0

3 years ago

Read 2 more answers

Indigo Corporation is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the fir

Tema [17]

Answer and Explanation:

a. The journal entries are shown below:

On Feb 1

Cash Dr $2,782,000 (53,500 shares × $52)

To Preferred stock $2,675,000 (53,500 shares × $50)

To Paid in capital in excess of par - Preferred stock $107,000

(Being the issuance of the preferred stock is recorded)

On July 1

Cash Dr $4,018,500 (70,500 shares × $57)

To Preferred stock $3,525,000 (70,500 shares × $50)

To Paid in capital in excess of par - Preferred stock $493,500

(Being the issuance of the preferred stock is recorded)

For recording these both transactions we debited the cash as it increased the assets and credited the preferred stock and additional paid in capital as it also increased the stockholder equity

b. The posting is as follows

Preferred Stock

Date Debit Date Credit

1-Feb $2,675,000

1-Jul $3,525,000

Paid in capital in excess of par - Preferred stock

Date Debit Date Credit

1-Feb $107,000

1-Jul $493,500

c. Now the presentation is shown below:

Preferred stock, $50 par value, 124,000 issued and outstanding - $6,200,000

Paid in capital in excess of par - Preferred stock - $600,500

It is presented on the stockholder equity statement

3 0

4 years ago

You have $250,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 12.9 percent, and Stock L

prisoha [69]

Answer:

The investment in stock H will be $104837.5 while the investment in stock L will be $145162.5

Explanation:

The portfolio return is the weighted average return of the individual stocks that form up the portfolio. The weightage of each stock in the portfolio is the investment in a stock as a proportion of investment in the portfolio.

Let x be the weightage of Stock H.

Weightage of Stock L will be (1-x).

Portfolio return = wH * rH + wL * rL

Plugging in the values,

0.111 = x * 0.129 + (1-x) * 0.098

0.111 = 0.129x + 0.098 - 0.098x

0.111- 0.098 = 0.031x

0.013 / 0.031 = x

x = 0.41935 or 41.935% rounded off to 3 decimal places

(1-x) = 1 - 0.41935 = 0.58065 or 58.065%

Investment in Stock H = 250000 * 41.935% = $104837.5

Investment in Stock L = 250000 * 58.065% = $145162.5

6 0

3 years ago