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2 years ago

A savings account is useful for all of the following purposes EXCEPT…

Business

2 answers:

Dimas [21]2 years ago

8 0

Answer:

The correct answer is letter "A": Putting aside money for retirement.

Explanation:

Savings accounts are those where individuals' can deposit money to profit from the annual interest banks and financial institutions provide. Retirement accounts, on the other hand, are those funded with money discounted from employees' paychecks and do not allow withdrawals unless there is a major qualifying event -<em>if the type of retirement account allows it</em>.

VashaNatasha [74]2 years ago

8 0

Answer:

Explanation:

hope it helps

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Data Recovery Systems (DRS) has a degree of operating leverage (DOL) equal to 3.2x and a degree of total leverage (DTL) equal to

Anna71 [15]

Answer:

The DRS's EBIT will be $205,920.

Explanation:

Degree of operating leverage measures how EBIT will change with change in sales

Degree of operating leverage (DOL) = % change in EBIT / % change in sales

In our case, DOL = 3.2x

Sales forecast = $300,000

Actual sales = $313,500

% change in sales = (Actual sales - forecast )/ forecast = (313,500 - 300,000) / 300,000

= 4.5%

EBIT forecast = $180,000

Now putting everything in DOL formula

3.2 = % change in EBIT / % change in sales = % change in EBIT / 4.5

% change in EBIT = 3.2 * 4.5

= 14.4%

Actual EBIT = Forecast *(1 + % change)

= 180,000*(1 + 0.014)

= $205,920

Therefore, The DRS's EBIT will be $205,920.

4 0

2 years ago

Arreaga Corp. has a tax rate of 40 percent and income before non-operating items of $928,000. It also has the following items (g

Sedbober [7]

Answer: $324,800

Explanation:

It is a general Principle that when calculating income tax expense, that the Extraordinary loss is treated separately because it is not a usual thing.

The income gained from changing the Accounting principle is not included as well.

The Taxable income to be recorded therefore is,

Taxable income = Income + Gain on disposal - Unusual loss (due to its infrequency)

Taxable income = 928,000 + 32,000 - 148,000

Taxable income = $812,000

Tax expense would therefore be,

= 812,000 * 40%

= $324,800

$324,800 is the amount of income tax expense Arreaga would report on its income statement.

3 0

2 years ago

Walter’s dividend is expected to grow at a constant growth rate of 6.50% per year. What do you expect to happen to Walter’s expe

denpristay [2]

Answer:

A. It will stay the same.

Explanation:

The formula to compute the dividend yield is shown below:

= (Annual dividend ÷ market price) × 100

Since in the question, it is given that the expected dividend is growing at the constant growth rate i.e 6.50%, so the expected dividend yield will remain the same in the future.

As it shows a direct relationship between the growth rate and the dividend yield plus the market price is growing at a steady rate

3 0

2 years ago

Are you dreaming of buying your own car, visiting a new city or learning a language— but aren’t sure how to get there? The key t

Alekssandra [29.7K]

Answer:

The steps to reaching your goals are:

Step 1: What is your goal?

Step 2: What is your why?

Step 3: What will it cost you?

Step 4: What is your action plan?

Step 5: How will you stick to the plan?

Explanation:

Step 1: What is your goal?

You have to be clear on what you want. Take for instance, you dream of buying your own car, write it down.

Step 2: What is your why?

State reasons why you need a car of your own. Is it for business runs or to aid your movement? you have to specify all the reasons.

Step 3: What will it cost you?

Do a market survey for best prices and car options.

Step 4: What is your action plan?

Can you afford it immediately or would you prefer to save up, pay in installments, etc

Step 5: How will you stick to the plan?

Give yourself targets according to your action plan and put yourself in check to ensure that you stick to the plan.

5 0

2 years ago

Which of the following best describes vertical integration? A. sell products to a supplier or a distributor B. develop the abili

jasenka [17]

Answer: B

Explanation:

A vertical integration is where a company owns another company in the same production line.

For example a company that bakes bread has a farm where wheat is cultivated, a marketing company and retail locations for the sale of the bread.

The advantages of Vertical integration include:

a. It reduces costs.

b. It increases efficiency.

c. It gives the firm greater control of the production process.

A major disadvantage of vertical integration is it requires huge capital outlay.

7 0

2 years ago