Which of the following statements is true about taxes?

A $150,000 loan is to be amortized over 7 years, with annual end-of-year payments. Which of these statements is CORRECT? a. The

Schach [20]

Answer:

The proportion of each payment that represents interest versus repayment of principal would be higher if the interest rate were higher

Explanation:

Amount of interest component in a loan instalment will be higher as compared with principal amount in the initial period of repayment . As period lapses , interest amount reduces progressively and principal amount increases . When the tenure of loan is increased , proportion of interest increases in an instalment .

3 0

3 years ago

All manufacturing costs are assigned to units of product and all non-manufacturing costs are treated as period cost under______c

sp2606 [1]

Answer:

absorption

Explanation:

Manufacturing cost can be regarded as the summation of the cost of consumed resources during the production of a product. It can be divided into

direct materials cost

✓ direct labor cost

✓ manufacturing overhead.

It should be noted that All manufacturing costs are assigned to units of product and all non-manufacturing costs are treated as period cost under absorption costing.

3 0

2 years ago

Divine Apparel has 3,200 shares of common stock outstanding. On October 1, the company declares a $0.25 per share dividend to st

Alenkasestr [34]

Answer:

The Journal entries are as follows:

(i) On October 1,

Dividend declared A/c(3,200 × 0.25) Dr. $800

To Dividend payable $800

(To record the declaration of cash dividend)

(ii) On October 15,

No entry

(No entry on date of record because no transaction actually happened)

(iii) On October 31,

Dividends payable A/c Dr. $800

To cash $800

(To record the payment of cash dividends)

6 0

3 years ago

Being on time in business situations generally means being about ________________.

Alla [95]

Answer:

Being on time in business situations generally means being about 5 minutes early

Explanation:

5 minutes late is acceptable with a brief apology. Ten to fifteen minutes late requires a phone call to warn of the delay and to apologize.

4 0

1 year ago

Today the current EUR to USD exchange rate is 1 EURO = 1.19 USD. According to the Bloomberg consensus estimate, the EUR to USD e

mr_godi [17]

Answer:

(a) ii Depreciate

(b) 84.03 Euro

(c) 123.03 Euro

(d) 161.17 USD

(e) 61.17%

(f) 15.29%

Explanation:

(a) The value of USD is depreciating as you can exchange 1.19 USD for 1 Euro but in after four years, you will need 1.31 USD to exchange for 1 Euro. Thus, you will need more dollars for 1 Euro.

(b) To convert USD to Euro, we just divide the USD with the exchange rate,

Euro = 100 / 1.19 ⇒ 84.0336 Euro

(c) We simply use the compound interest rate formula to calculate the value of our investment after four years with compounding interest,

The formula for compound interest rate is,

A = P(1 + r/n)^nt

Where,

A = Final amount of investment

P = Initial principal Invested

r = interest rate

n = number of times interest is compounded per time period

t = number of time periods

A = 84.03 ( 1 + 0.1/1)^4 ⇒ 123.028323 Euro

(d) We convert the euros back to USD using the after 4 year exchange rate of 1 Euro to 1.31 USD,

123.03 * 1.31 ⇒ 161.17 USD

(e) Total Return in USD = (161.17 - 100) / 100 ⇒ 0.6117 or 61.17 %

(f) The annual average return can be calculated by dividing the total return by the number of years = 61.17% / 4 = 15.2925 %

4 0

3 years ago

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