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3 years ago

An annuity Question 6 options:

Business

2 answers:

Rus_ich [418]3 years ago

8 0

Answer:

The correct answer is letter "C": is a level stream of equal payments through time.

Explanation:

Annuities are payments made at equal intervals that could be annual, quarterly, monthly, biweekly or daily. Annuities are defined as periodic and equal payments. There are five (5) types of annuities: fixed annuities, variable annuities, fixed-indexed annuities, immediate annuities, and deferred annuities.

Nady [450]3 years ago

5 0

Answer:

is a level stream of equal payments through time.

true. The payments will remain at the same levle for the entire period of the annuity until maturity.

Explanation:

is a debt instrument that pays no interest.

FALSE the annuity does provide interest for each period when is prepared.

Has no value.

FALSE the annuity can be saled in the secondary market pretty much anitime.

is a stream of payments that varies with current market interest.

FALSE the payment will be the same regardless of the interest rate.

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Other things equal, the monopsonistic employer will pay a

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Answer: The correct answer is "a. lower wage rate and hire fewer workers than will a purely competitive employer.".

Explanation: Monopsony is generated when there are many people looking for work and there are only a few employers, who can afford to offer a lower salary than they would have to offer if there was more competition for workers.

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3 years ago

On January 1, 2017, Eagle borrows $16,000 cash by signing a four-year, 5% installment note. The note requires four equal total p

goblinko [34]

Answer:

Issuance - January 1, 2017

Cash $16,000 (debit)

Note Payable $16,000 (credit)

December 31, 2017

Interest Expense $800 (debit)

Note Payable $3,712.19 (debit)

Cash $4,512.19 (credit)

December 31, 2018

Interest Expense $614.39 (debit)

Note Payable $3,897.80 (debit)

Cash $4,512.19 (credit)

December 31, 2019

Interest Expense $419.50 (debit)

Note Payable $4,092.69 (debit)

Cash $4,512.19 (credit)

December 31, 2020

Interest Expense $214.87 (debit)

Note Payable $4,297.32 (debit)

Cash $4,512.19 (credit)

Explanation:

The Loan Amortization Schedule is most appropriate way to solve all parts of this problem.

The first step to construction of the Amortization Schedule is to determine the payments made annually, PMT (interest and principal).

Using a Financial calculator, this can be determined as ;

Pv = $16,000

r = 5%

n = 4

Fv = $0

p/yr = 1

Pmt = ?

Thus PMT is $4,512.19.

Amortisation Schedule (Extracted from Financial Calculator)

2017

Principle Payment = $3,712.19

Interest Payment = $800

Balance = $12,287.81

Accounting Entries :

Interest Expense $800 (debit)

Note Payable $3,712.19 (debit)

Cash $4,512.19 (credit)

2018

Principle Payment = $3,897.80

Interest Payment = $614.39

Balance = $8,390

Accounting Entries :

Interest Expense $614.39 (debit)

Note Payable $3,897.80 (debit)

Cash $4,512.19 (credit)

2019

Principle Payment = $4,092.69

Interest Payment = $419.50

Balance = $4,297.32

Accounting Entries :

Interest Expense $419.50 (debit)

Note Payable $4,092.69 (debit)

Cash $4,512.19 (credit)

2020

Principle Payment = $4,297.32

Interest Payment = $214.87

Balance = $0

Accounting Entries :

Interest Expense $214.87 (debit)

Note Payable $4,297.32 (debit)

Cash $4,512.19 (credit)

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3 years ago

Identify which characteristic describes common stock (CS) or preferred stock (PS) financing. May have cumulative and participati

shepuryov [24]

Answer:

Common Stock (CS)

Places minimum operating constraints on the firm. - Common stock does not have to be paid dividends so place no obligations on the firm.
Last to receive distribution of assets in the event of bankruptcy and liquidation. - CS is paid last when assets are liquidated as debt and preferred stockholders are paid off first.

Preferred Stock (PS)

May have cumulative and participating features. - Can be cumulative which means that if dividends are not paid in one year, the dividend will be accrued and eventually paid or they can be Participating which means that they can receive more dividends than they are entitled to.
May be convertible into another type of security. - Preference shares can be converted into other securities such as Common stock.

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3 years ago

Melbourne Company uses the perpetual inventory method. Melbourne purchased 500 units of inventory that cost $4.00 each. At a lat

ra1l [238]

Answer:

$1,200

Explanation:

Calculation to determine what the amount of ending inventory appearing on the balance sheet will be:

First step is to determine the units in ending inventory

Units in ending inventory=500 units + 600 units – 800 units sold

Units in ending inventory= 300

Now let determine the Ending inventory

Ending inventory=300 units x $4.00

Ending inventory = $1,200

Therefore the amount of ending inventory appearing on the balance sheet will be:$1,200

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3 years ago

Vino Tinto Inc. sells a variety of wines but specializes in selling premium red wine. If the company enters into an agreement wi

Ne4ueva [31]

If the company enters into an agreement with a winery in Spain to purchase all the red wine the winery produces, this would be a: output contract

<h3>Explanation:</h3>

An output contract is an arbitration where one party consents to acquire the complete product that the other party accumulates. Thus, the consumer will obtain all the 'output' the trader executes.

Output contracts can be valuable to consumers when there is conjecture about market supply or demand for a distinct good. Output contracts attend the sale of goods, these sorts of contracts are directed by the Uniform Commercial Code. In the fact of output contracts, the U.C.C. claims that both parties to the contract act in real faith.

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3 years ago