All categories

3 years ago

Compensating balances

Business

1 answer:

Airida [17]3 years ago

8 0

Answer:

The correct answer is D

Explanation:

Compensating balance is the balance which is to be minimum amount that is to maintained or kept in the bank account, so that could be used to offset the cost incurred by the bank for setting up the loan.

It is that balance which is not available for the company to use and might be needed to disclose in the notes of the borrower in the financial statements.

So, it is a specific kind of collateral, allow bank to monitor payment practice of firms and require to have a minimum amount that borrower need to keep in the checking account.

You might be interested in

During July, the equivalent units of direct materials added to the product worked on by Department A amounted to a total of 90,0

dybincka [34]

Answer:

Cost of ending inventory =$15,000

Explanation:

Given:

Direct material = 90,000

beginning Inventory = 20,000

Completed Inventory = 60,000

Ending Inventory = 10,000

Total cost of direct materials = $135,000

Computation:

Cost of ending inventory = Ending Inventory × Per Item cost

Cost of ending inventory = 10,000 × $1.50

Cost of ending inventory =$15,000

Working Note:

Cost per unit = Cost of direct materials / Units in direct materials

Cost per unit = $135,000 / 90,000

Cost per unit = $1.50

7 0

3 years ago

Which phrase describes an unsolicited proposal?

mezya [45]

Answer: D.) not requested by the audience

Explanation: An unsolicited proposal simply means a proposal which is not based on request by the audience or the company it is being addressed to. It involves a written application aimed at obtaining a contract or work placement in an agency when such agency or organization without any formal request or call for application by the agency or organization. Unsolicited proposal are usually written in other to inform an agency that the writer is capable of offering solution to a problem within the agency or industry using his or own innovative idea.

4 0

3 years ago

Knox operates an electronics store as sole proprietor. On April 5, Knox was involuntarily petitioned into bankruptcy under the l

Xelga [282]

Answer:

$800

Explanation:

Since $50,800 are available for distribution, the payments will start with the trustee, the lawyers and the suppliers:

trustee will receive $15,000
lawyers will receive $10,000
Dart will receive $20,000
<u>Noll will receive $5,000 </u>

total $50,000

After the suppliers, lawyers and trustee are paid, only $800 are left and they will be given to Boyd. The creditors with unsecured claims will get $0.

6 0

3 years ago

After purchasing a fancy cut diamond ring for his wife, jason feels dissatisfied with his purchase as he feels that the ring was

ivanzaharov [21]

Buyer's remorse.

Buyer's remorse is a feeling of regret after making a purchase, especially for something expensive or extravagant.

3 0

3 years ago

Ruth executes a will in 2012 naming her nephew stan as sole beneficiary. in 2014, ruth executes another will, naming her niece t

Slav-nsk [51]

Stan and Tammy will share the estate in equal shares. You are able to have as many beneficiaries as you name, due to this and no change in the first will, both will be heirs to the estate. If Ruth were to have revoked the first will, then it would have left Tammy the sole beneficiary.

5 0

3 years ago