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natali 33 [55]
3 years ago
8

Suppose you are in charge of the financial department of your company and you have to decide whether to borrow short or long ter

m. Checking the news, you realize that the government is about to engage in a major infrastructure plan in the near future.
a. Predict what will happen to interest rates.
b. Will you advise borrowing short or long term?
Business
1 answer:
Degger [83]3 years ago
6 0

Answer:

a. Interest rate will rise.

b.   Borrowing on short term

Explanation:

A. The interest rate will likely go up if government embark on major infrastructure plan in the future. The reason for the rise is that it`s assumed that government will borrow to finance the infrastructure plan and when government borrows, there will be less money in the economy which will make credit scarce and interest rate to rise because of the depleting credit level in the economy.

B. I will advise to borrow on short term because of the impending rise in interest rate. If borrow on short term, the fluctuation in the interest rate will unlikely affect the short term facility. In contrast, if borrow on long term, the impeding rise in the interest rate might increase finance cost for the firm  in servicing the facility and also erode the facility value.

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Customer satisfaction is increased as a result of quality management, which also enables businesses to meet customer expectations. One of the key areas where businesses need to be knowledgeable enough is in the service quality.

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8 0
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Oregon Outfitters issues 1,300 shares of $1 par value common stock at $21 per share. Later in the year, the company decides to r
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Answer and Explanation:

The Journal entry is shown below:-

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2.Treasury stock Dr, $5,000

(250 × $20)

        To Cash  $5,000

(Being repurchase of treasury stock is recorded)

3. Cash Dr, $6,750

(250 × $27)

      To Treasury stock $5,000

(250 × $20)

      To Paid in capital-Treasury stock $1,750

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3 0
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Which is the correct order of the following steps in the accounting cycle? Prepare financial statements, journalize and post adj
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Explanation:

Prepare a post-closing trial balance.Step 9

Prepare an adjusted trial balance.Step 6

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Prepare a trial balance.Step 4

Journalize the transactions.Step 2

Journalize and post closing entries.Step 8

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Answer:

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Explanation:

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4 0
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Answer:

a gain for 6,000 dollar will be recognized

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