Answer:
Mark Johnson's investment would worth $ 13,223.95 at 8%,$ 12,338.93
at 5% and $ 11,784.66 at 3%
Explanation:
In calculating the worth of the investments at different rates of interest I adopted the future value approach as contained in the attached.
Answer:
a. Analytical review of loan agreement.
Inquiry from management about the loans and its covenants.
Observing the management behavior towards covenants.
Inspecting the effects of each covenant on business activities.
b. According to IAS 24, related party transactions the loan from president should be disclosed.
Explanation:
Loans are a source of funding to a business. Many organizations prefers high debt funding as it is a cheap source of finance. On the other hand high debt companies are considered as risky. When an auditor analyses the loan covenants he must ensure that he reads the complete agreement and analyses the effects that each covenant has on the company's performance. Loan covenants are always considered as flagged as this is an important area which requires detailed audit. In the given scenario the loans are taken against company's inventory and receivable accounts which is a threat to company's working capital. There are covenants imposed not to distribute any dividend to shareholders. These will create a liquidity position for a company if the loan is not paid on time and company will not have sufficient amount of working capital to fund its routine expenses and business operations.
b. IAS 24 provides detailed guidance on discloses for transaction involving related party. The president of a company has provided loan to the company this should be disclosed in the notes. The transaction should be in the arms length and disclosures should be made for every transaction.
A contract between businesses in two different countries falls under private international law, while disputes between two countries over trade subsidies falls under public international law.
- The body of laws, norms, and standards generally accepted as obligatory between nations is known as international law, sometimes known as public international law, the law of nations, and international ethics.
- Both civil (also known as Roman) and common law systems can be regarded as the most prevalent in the globe.
- Civil law is the most prevalent in terms of both population and landmass, whereas common law is used by the most people out of all civil law systems.
<h3>What is a country's legal system ?</h3>
The method for making, interpreting, and upholding the laws in a given territory is the legal system of a nation.
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Answer:
Trade credit
Explanation:
The answer to this question is trade credit. Trade credit can be defined as a loan that is given by one trader to another trader when they buy goods and services without immediate payment. That is when these are bought on credit. Through trade credit, there is the facilitation in the purchase of supplies without paying for the suppliers immediately. It is mostly used as a way of short-term financing.
The U.S. fiduciary monetary system is one where money is not convertible to a valuable commodity such as gold.
Option a
<u>Explanation:
</u>
In fiduciary monetary system, the money is issued by the government and the value of the money depends uniquely on faith of the public that the currency represents command over services and goods. The word fiducia is from Latin and it means trust or confidence.
Fiduciary money includes demand deposits of banks namely checking accounts. Fiduciary money is accepted depending on the trust its issuer commands.
The fiduciary currency is supplied in the economy by Fed. Fiduciary money can be classified into two categories namely,
- Paper money - Includes all the banknotes
- Divisional currency - Includes all the coins
