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zavuch27 [327]
3 years ago
13

A call provision in a bond...A. Limits the actions of the borrower.B. Protects the borrower from unscrupulous practices by the l

ender.C. Allows the issuer to repurchase the bonds on the open market prior to maturity.D. Grants the issuer the option to repurchase the bonds prior to maturity at a pre-specified price.
Business
1 answer:
Masja [62]3 years ago
7 0

Answer:

D. Grants the issuer the option to repurchase the bonds prior to maturity at a pre-specified price.

Explanation:

Call provision -

It is a condition given on the contract for the bond or any fixed - income instruments , which enable the issuer to again purchase the bond at some previously decided price amount , is known as a call provision .

Hence , from the given statements , the correct statement regarding call provision is option ( D. ) .

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Domestic producers experience limited import competition when a VER is in place. As a result, these producers make extra profit
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Quota rent

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Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credi
seropon [69]

Answer:

Explanation:

The journal entry is shown below:

(A) Sales return and allowance A/c Dr $450,000

    To Accounts receivable                        $450,000

(being returned goods recorded)

Merchandise inventory A/c Dr $292,500   ($450,000  × 65%)

       To Cost of goods sold                      $292,500

(Being cost of goods sold recorded)

The computation of the estimated return is shown below:

= Sale value of merchandise × return percentage - actual return

= $11,500,000 × 4% - $450,000

= $460,000 - $450,000

= $10,000

(B) Sales return and allowance A/c Dr $10,000

    To Accounts receivable                        $10,000

(being returned goods recorded)

Merchandise inventory A/c Dr $6,500   ($10,000  × 65%)

       To Cost of goods sold                      $6,500

(Being cost of goods sold recorded)

The computation of the year-end allowance for sales returns is shown below:

The amount is same $6,500

4 0
3 years ago
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