A savings account would be properly classified as cash which is an interest bearing bond account held at a bank or alternative monetary organization that offers an uncertain interest rate. The banks or monetary organizations may have assured the number of withdrawals can create from savings account each month and burden fees if uphold a certain average monthly balance in the account.
Answer:
Interest paid in cash in 2018 = $0
Interest recognized on the Income statement = $1,800
Liabilities recognized = $90,000
Amount paid for Principal and interest = $93,600
Interest reported on 2019 Income statement = 1800
Explanation:
Interest paid in cash in 2018 is zero because interest and principal were paid in cash on the maturity date.
Interest recognized in 2018 = 90000*0.08*3/12 = $1800
liabilities are recognized at original amount because the interest is not capitalized and no payment made thus far.
Amount paid on maturity date is 93,600 ( 90000 principal, 3600 interest)
interest reported is for three months jan - march
Answer: The problem in outsourcing from low-cost country:
It is seeking goods and services beyond the border of a region. It is a process where organizations look for the most cost-effective place globally to manufacture their goods. Most organizations choose a global sourcing strategy as the cost is using lower abroad.
Explanation:
Outsourcing from low-cost countries a move by the company to cut costs as they have a huge presence of labor. It will allow them to concentrate on their core activities. But, there are some problems outsourcing from low-cost countries. Some are :
1. Sometimes the outsourcing does not provide the expected cost savings.
There might be new conflict and problem arising from different sources
2. There might be legal barriers present between the two different nations involved in outsourcing.
Spending that goes into our national debt. Debt spending.
