Answer:
17%
Explanation:
If a company issued a short-term note payable to a bank with a stated 12 percent rate of interest and in addition the bank charged a .5% loan origination fee and remitted the balance to the company. The effective interest rate paid by the company in this transaction would be 17%
The effective annual interest rate is <u>the interest rate that is actually earned or paid on an investment, loan</u> or other financial product.
Hence, since the company is both paying the initial 5% and the later 12%, effectively the company is paying 17% on the note payable.
Answer and Explanation:
The journal entries are shown below:
1. Interest Receivable $300($36,000 × 10% x 30 ÷ 360)
To Interest Revenue $300
(Being accrued interest revenue is recorded)
2. Cash $36,450
To Interest Receivable A/c $300
To Interest Revenue A/c $150 ($36,000 × 10% x 15 ÷ 360)
To Notes Receivable A/c $36000
(Being note maturity date it is honoured is recorded)
Answer:
A. the iso-quant line is tangent to the iso-cost line.
Explanation:
Cost minimization refers to the decrease in level of cost of production for certain specified level of production.
Iso quant line represents the labor and capital combinations keeping the total cost same. The least combination represents the tangent to isoquant, basically representing the idle choice of labor and capital.
In this manner the company chooses the idle way of cost minimization.
Negative attitude can lead to high turnover
Answer:
B
Explanation:
Depreciation is the uniform decrease in the value of an asset over a period until the salvage value is reached.
It is given by :
Annual depreciation expense = (cost of asset - salvage)÷ useful life of the asset
Therefore the accumulated depreciation would not equal the original cost of the asset at the end of its estimated useful life because the salvage value will be deducted from cost of asset under declining-Balance.
