The option for saving money which typically offers the most liquidity is D. a basic savings account.
Liquidity refers to the fact that you can withdraw your money anytime you want.
Answe and Explanation:
For banks and other financial institutions, the discrepancy between the short-term maturities of their deposits and the long-term maturities of their assets is referred to as _a maturity mismatch___________.
Answer:
A. Dr Bad Debt Expense$5,350
Cr Allowance for Doubtful account$5,350
B. Dr Bad Debt Expense $2,800
Cr Allowance for Doubtful account$2,800
Explanation:
Preparation of the journal entry for the estimated bad debts
A. Based on the information given the Journal entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts will be:
Dr Bad Debt Expense$5,350
Cr Allowance for Doubtful account$5,350
[(4%*90,000)-1,750]
B. Based on the information given the Journal entry for estimated bad debts assuming that the allowance is to provide for doubtful accounts will be:
Dr Bad Debt Expense $2,800
Cr Allowance for Doubtful account$2,800
[(5%*90,000)-1,700]
Answer:
$115 million
Explanation:
Calculation for the present value of the business.
Using this formula
Present value=Free cash flow+Horizon value
Where,
Free cash flow =$15 million
Horizon value=$100 million
Let plug in the formula
Present value=$15 million +$100 million
Present value=$115 million
Therefore the Present value of the business will be $115 million
Answer:
Cash inflows = $3,260
Cash outflows = $3,260
Total assets = $22,300
Total liabilities = $2,724
Net worth = $19,576
Explanation:
Cash inflows = Monthly take-home salary $3,260
Cash outflows = Rent for the month $1,360 + Spending for food $560 + Telephone bill paid for month $94 + Loan payment $147 + Auto insurance $326 + Payment for electricity $166 + Lunches/parking at work $181 + Donations $122 + Clothing purchase $137 + Restaurant spending $167 = $3,260
Total assets = Cash in checking account $1,270 + Savings account balance $1,990 + Current value of automobile $8,530 + Household possessions $3,970 + Stereo equipment $2,590 + Home computer $2,140 + Value of stock investment $1,810 = $22,300
Total liabilities = Balance of educational loan $2,390 + Credit card balance $334 = $2,724
Net worth = $22,300 - $2,724 = $19,576
