Answer:
Type of loan <u>credit card</u> unsecured loan <em>retail financing</em>
Features/benefits <u>miles toward travel; no fixed maturity date</u> no collateral is necessary; no fixed maturity date <em>no payment due for the first six months
</em>
Costs <u>interest rate of 11 percent</u> interest rate of 10 percent <em>interest rate of 17 percent
</em>
Risks <u>can rack up debt quickly; penalties for late or missed payments </u><em>relatively little risk to the consumer</em> <em>
must be paid off in five years
, the minimum payments with interest are extremely high</em>
Explanation:PLATO ANSWER
Credit card info is underlines
Unsecured loan is bold
retail financing is in italics
Answer:
(a) $2,040
(b) $1,020
Explanation:
(a) Under the accrual method of accounting revenue is recognized in the month when product is delivered,
Revenue is recognized on the March income statement from this order:
= Units Delivers × Unit price
= 136 × $15
= $2,040
(b) Revenue is recognized on the April income statement from this order:
= Units Delivers × Unit price
= 68 × $15
= $1,020
The percentage of texting and driving car accidents in the united states is 1 out of 4 which means 25%
Answer:
Multiple-step income statement for the year ending December 31, year 1
Sales $275,200
Cost of Goods Sold <u>($185,000)</u>
Gross Profit $90,200
Operating Expenses:
Administrative Expense ($35,000)
Selling expenses <u>($55,000)</u>
General Expense <u>($45,000)</u>
Operating Income ($44,800)
Non-Operating Revenue <u>$105,000</u>
Operating Income before tax $60,200
Income taxes <u>($25,000)</u>
Operating Income after Tax <u>$35,200</u>
Explanation:
Multi-step Income statement segregate the Operating Income and Expenses from non operating Income and Expense. It shows the gross profit and net operating income separately.