Answer:
he interest rate on the loan is called the Discount Rate
Explanation:
Discount Rate - The discount rate relates to the interest rate paid on loans from the Federal Reserve Bank by business banks and other economic organizations through the discount window credit system.
And other definition of discount rate is the discount rate relates to the rate of interest used during the Discounted Cash Flow (DCF) assessment to assess the current value of future revenues.
Answer:
C. Build up inventories before reducing production.
Explanation:
Demand shocks happen when there is a sudden and considerable shift in the patterns of private spending, either in the form of consumer spending from consumers or investment spending from businesses. An economic downturn in the economy of a major export market can create a negative shock to business investment, particularly in export industries. A crash in stock or home prices can cause a negative demand shock as households react to a loss of wealth by cutting back sharply on consumption spending. Supply shocks to consumer commodities with price inelastic demand, such as food and energy, can also lead to a demand shock by reducing consumers real incomes. Economists sometimes refer to demand side shocks as "non-technological shocks." We need to build up inventories before reducing production.
Answer:
A. Mar 31
Dr Raw materials $50,400
Cr Account pay $50,400
B. 31
Dr Factory labour $61,300
Cr Factory wages $61,300
Explanation:
Preparation of the Journal entries for Sunland Company
A. Since we were told that the company purchases the amount of $50,400 of raw materials on account this means that the transaction will be recorded as:
Mar 31
Dr Raw materials $50,400
Cr Account pay $50,400
B. Based on the information given we were told that the company incurs the amount of $61,300 of factory labor costs this means that the transaction will be recorded as:
31
Dr Factory labour $61,300
Cr Factory wages $61,300
Answer:
The entry will be,
Cash 461461 Dr
Discount on Bonds Payable 18539 Dr
Bonds Payable 480000 Cr
Explanation:
The bonds are being issued at a discount because the rate of interest offered by the bonds is less than that is prevailing in the market. Thus, the bonds will be issued at a discount of,
Discount on Bonds Payable = 480000 - 461461
Discount on Bonds Payable = 18539
The entry will be to record the receipt of cash by debiting the cash account by 461461 and debiting the discount on bonds payable by 18539 and recording a credit against these debits of 480000 as bonds payable
Answer:
cost accounting system
Explanation:
The system that is being described is known as a cost accounting system. This system is mainly used by firms in order to estimate the cost of their various products in order to use the information to analyze their profitability as well as their inventory valuation and cost control, all of which are vital to the company's profitable operations when dealing with accounting.
