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NNADVOKAT [17]
3 years ago
5

_____________ is a promise of future payment issued by a firm and guaranteed by a bank that is used to finance international tra

de with typical maturities ranging from one to six months.
Business
1 answer:
sergij07 [2.7K]3 years ago
8 0

Answer:

<u>"A banker's acceptance"</u> is a promise of future payment issued by a firm and guaranteed by a bank that is used to finance international trade with typical maturities ranging from one to six months.

Explanation:

A banker's acceptance is a characteristic short-term loan or rather a fixed-rate loan used for international trade.​ It is safer, easier, gives the seller assurance of getting paid by the buyer's bank. The bank is obligated to pay the party offering service, in this case, "the exporter" at a later time. The buyer's bank after conducting checks to ascertain how creditworthy the buyer who approached them might be, finally they agree to pay the seller with the buyer's account debited as this works as additional security for both parties. Banker's acceptance is considered investments, one of the reasons is that it can be held until maturity or sold at a discount before maturity.

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merchandise costing 1200 is sold for 2200 on term 2/30,n/60. If the customer pays within the discount period. Prepare the journa
spin [16.1K]

Answer:

The journal entries are as follows:

(a) Accounts receivables [$2,200 - 2%] A/c Dr. $2,156

             To Sales revenue                                              $2,156

(To record the sale)

(b) Cost of Goods Sold A/c Dr. $1,200

          To inventory                                $1,200

(To record the cost of goods sold)

(c) Cash A/c Dr. $2,156

       To Accounts receivables  $2,156

(To record payment within discount term)

3 0
3 years ago
Jurisdiction E spends approximately $7 million each winter on snow removal. The jurisdiction is considering adding a new income
frez [133]

Answer:

'Taxes' can be defined as a compulsory contribution to the state's or country's revenues, which are levied by the governments on personal incomes of individuals or profits of the corporate, or on some transactions.

Taxes are the main source of revenues for any government, through which it receives the necessary funds to spend on various activities it undertakes for public welfare and maintaining the law and order and security of the nation.

Many theorists believe that every tax should be evaluated on certain standards and the following four standards have been mentioned for evaluating whether taxes are good or not:

  1. Taxes should be sufficient to fulfill the government's requirements
  2. Taxes should be convenient for the government to implement and for the citizens to pay
  3. Taxes should be efficient economically
  4. Taxes should be fair

There may be certain provisions introduced in the federal tax system, which are targeted to induce certain behaviors or shift people's attention towards certain activities. These provisions are called tax preferences

Does this proposed change in Jurisdiction E's tax law meet the definition of a tax preference? Explain briefly.

In the given question, the decision of the jurisdiction to give deduction to the people for the snow removal equipment they purchase, is definitely a tax preference as it induces people to invest in snow removing machines, as they are getting full deduction of such expense in income taxes.

By having this provision, the government is motivating people to invest in these machines, and people also have the benefit of having such machine with them, and also getting tax deduction for such expense, so getting such machine almost free (this applies to people who have incomes in such tax bracket only). Thus it is the way of government in encouraging people to buy snow removing machines and reduce the burden on the government. Thus it is clearly a tax preference.

Jurisdiction E forecasts that the proposed change will decrease its annual tax revenues by $250,000 but will improve the jurisdiction's financial condition by $300,000. On what assumptions is this forecast based?

The forecast regarding decrease in annual tax and improvement in financial condition is based on the assumptions of people taking benefit of such a provision, and actually investing in snow removing machines.

The jurisdiction believes that people will purchase the machines and make claims for deductions, effecting the tax revenue by $250,000. But at the same time, as many people will themselves remove the snow, the government doesn't have to spend so much on snow removal and thus make the savings of $300,000

6 0
3 years ago
Which of the following statements abouot the declaration and payment of cash dividends is correct?
padilas [110]

Answer: C. Declaration and payment of cash dividends will reduce the amount of cash available to invest in assets.

Explanation:

When a company pays out Dividends it gives out money to it's shareholders and this has the effect of decreasing the cash balance that the company has.

This is cash that could have gone into investing and expanding the business but instead has gone to shareholders. Dividends therefore reduce the money available for investments.

It is for this reason that Growth Companies do not pay much dividends as they keep reinvesting profits to increase capacity and this usually adds value to the company and increases their stock price within a shorter period of time.

6 0
2 years ago
A change in the amount of sales can be due to either a change in the units sold or a change in price or both.
olga55 [171]

Answer:

true

Explanation:

The amount of sales variables (units sold and price) are correlated then a change in 1 will always alter the other.

5 0
3 years ago
Metlock, Inc. has 5900 shares of 6%, $50 par value, cumulative preferred stock and 118000 shares of $1 par value common stock ou
MrRa [10]

Answer:

$23900

Explanation:

Given: Cumulative Preferred stock is 5900 shares of 6% at $50.

           Dividend paid in 2019= $11500

First lets calculate the value of preferred stock.

Preferred stock= 5900 shares\times \$ 50\times \frac{6}{100}

∴ Preferred stock= $17700.

Formula:

Dividend received by preferred stockholder= [Preferred\ stock +(Preferred\ stock-Dividend\ paid)]

⇒Dividend received by preferred stockholder=17700+(17700-11500)

⇒ Dividend received by preferred stockholder= 17700+6200= \$ 23900

∴ $23900 dividend received by preferred stockholder in 2020.

4 0
3 years ago
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