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3 years ago

What are two main reasons for having a savings account

Business

1 answer:

jasenka [17]3 years ago

5 0

Answer:

two main reasons for having a savings account:

It can be used as a vacation fund.
An account to pay cash for new things and cover repairs.
Can be used as an emergency account.

Hope it helps!

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TB MC Qu. 04-99 K. Canopy, the proprietor of Canopy Services... K. Canopy, the proprietor of Canopy Services, withdrew $6,200 fr

Svetlanka [38]

Answer:

Debit K Canopy, Capital $6,200;

Credit K Canopy Withdrawals $6,200

Explanation:

With regards to the above, the entries to close the withdrawals account at the end of the year would be;

Debit K Canopy, Capital $6,200

Credit K Canopy Withdrawals $6,200

Capital is being debited because cash is being taken from the business, hence it will be debited, while withdrawal account would be credited since its receiving cash.

4 0

3 years ago

I cant find the right answer:

Whitepunk [10]

Answer : $4938.80

A sinking fund is a term that can be broadly used to describe putting a fixed amount of money aside at regular intervals for a given time frame and investing this money at a given interest rate with an objective of saving a desired amount of money at the end of the time period.

In finance it's referred to commonly as an annuity payment.

For this question, we can use the formula for Future Value of an annuity to arrive at the answer.

$FVA = P\left [ \frac{(1+r)^{n}-1}{r}\right ]$

where

FVA = future Value of an annuity

P = periodic payment

r = interest rate per period

n = number of periods

The following information is given in the question:

FV = $120,000

Interest Rate = 8% p.a

No. of years = 5 years

No. of compounding periods in a year = 4

So,

$i = \frac{Annual Interest rate}{number of compounding periods in a year}$

i =0.02

$n = {number of compounding periods in a year} * no. of years$

n = 20 ( 5 * 4)

Substituting these values in the FVA equation, we have

$120000 = P\left [ \frac{(1+0.2)^{20}-1}{0.02}\right ]$

$120000 = P\left [ \frac{0.485947396}{0.02}\right]$

$120000 = P * 24.2973698$

$P= \frac{120000}{24.2973698} = 4938.806175$ .

6 0

3 years ago

Company ABC has total liabilities of $660,000 and total equity of $342,000. The company needs to raise additional funds through

igor_vitrenko [27]

Answer:

the company can borrow maximum of $268,000

Explanation:

Given:

total liabilities = $660,000

total equity = $342,000

Total Cost of shares = 12,000 shares × $15 = $180,000

Total asset before loan = total liabilities + total equity + Cost of shares

=$660,000 + $342,000 + 180,000

= $1,182,000

Let x represent the maximum amount that the company can borrow =

(Total liabilities + x) ÷ ( Total asset before loan + x) = debt-to-asset ratio

Where debt-to-asset ratio = 0.64

So ($660,000+ x) / ($1,182,000 + x) = 0.64

Cross multiply

$660,000+ x = 0.64 ($1,182,000 + x)

$660,000+ x = 756,480 + 0.64x

x - 0.64x = $756,480 - $660,000

0.36x = $96,480

x = $268,000

the company can borrow maximum of $268,000

3 0

3 years ago

Read 2 more answers

both capital and labor double, given the production function, output will double . If output doubles when inputs double, the

Sergeu [11.5K]

Answer:

If output doubles when inputs double, the production function will be characterized by a <u>constant returns to scale</u>.

Explanation:

In economics, returns to scale refers to a long run situation that reveals to the proportionate change in output when capital and labor inputs become variable or change.

The three possible types of returns to scale are as follows:

1. Increasing returns to scale: This occurs when the proportionate change in output is greater than the proportionate change in capital and labor inputs.

2. Decreasing returns to scale: This occurs when the proportionate change in output is less than the proportionate change in capital and labor inputs.

3. Constant returns to scale: This occurs when the proportionate change in output is the same as the proportionate change in capital and labor inputs.

Based on the above explanation therefore, if output doubles when inputs double, the production function will be characterized by a <u>constant returns to scale</u>. This is because the the proportionate change (double) in output is the sames as the proportionate change (double) in inputs.

3 0

4 years ago

When a person votes in an election using a ballot obtained from his county election officer either in person beforehand or by ma

Dimas [21]

Answer:

absentee voting is the correct answer

8 0

4 years ago

Read 2 more answers