Answer:
The correct answer is letter "C": the interest rate the Fed charges commercial banks for borrowing funds.
Explanation:
The discount rate is the amount of interest the Federal Reserve (<em>Fed</em>) charges private banks for short-term loans. Banks will often borrow from each other for short-term needs with central banks like the Fed typically acting as a lender of last resort. As a result, it likes to keep its discount rates somewhere above what private banks are charging each other.
Answer:
Balance after adjustment will be a credit of $90,000
Explanation:
<em>Particulars Amount</em>
Non-collectible accounts $108,000
Credit balance <u>$18,000</u>
Balance Adjustment <u>$90,000</u>
Balance after adjustment will be a credit of $90,000
Note: Non-collectible accounts = 2% * $5,400,000 =$108000
Answer:
E) existing factory has enough capacity to handle demand for the new products as well as the existing products.
Explanation:
If the existing factory doesn't have enough capacity to produce both the new product and existing ones, then if doesn't matter if the technology used is the same, or the new product is an extension of an existing product line, or existing human resources possess the abilities and knowledge required, or even if the product design is already complete or not.
If the factory's production capacity cannot handle the new product, then the company needs to expand the existing factory's production capacity or build a new facility.
The bond issuance should be recorded as the bond issued with discount. There is a difference between the bond's par value and its selling price. If a bond sold below its par value, a discount will appear as the difference between them. For the journal entry, there will be a debit balance in cash account for $1,864,097, debit balance in the discount of the bond payable account for $ 135,903, and credit balance in the bond payable account for $2,000,000.
Answer:
<em><u>Law of Demand</u></em>
<em><u>The price a consumer is willing to pay for a good depends on his marginal utility, which declines with each additional unit of consumption, according to the law of diminishing marginal utility. Therefore, the price decreases for a normal good when consumption increases.</u></em>