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3 years ago

What's one disadvantage of a certificate of deposit (CD) as compared to a passbook savings account?

Business

2 answers:

san4es73 [151]3 years ago

5 0

Answer: A. Depositors must keep their money in the account for a fixed period of time.

Explanation:

A certificate of deposit (CD) is known to be a short term security which does not allow depositors to withdraw money from the account on demand. In other word, depositors are not permitted to withdraw until the maturity date. Thus, it has a high interest rate.

A passbook savings account is a saving account in which the account holder uses a paper book for transaction in the banking hall.

bagirrra123 [75]3 years ago

3 0

A. Depositors must keep their money in the account for a fixed period of time.

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15. Assume that Bullen issued 12,000 shares of common stock, with a $5 par value and a $47 fair value, to obtain all of Vicker's

vodomira [7]

Answer:

$104,000

Explanation:

Note: <em>The full question is attached as picture below</em>

Fair value of net assets = Cash and receivables + Inventory + Land + Buildings (net) + Equipment (net) - Liabilities

Fair value of net assets = $70,000 + 210,000 + 240,000 + 270,000 + 90,000 - 420,000

Fair value of net assets = $460,000

Purchase consideration paid = 12,000*$47

Purchase consideration paid = $564,000

Goodwill recognized = Purchase consideration - Fair value of net assets

Goodwill recognized = $564,000 - $460,000

Goodwill recognized = $104,000

7 0

2 years ago

Because of its importance in summarizing your strategy, the Introduction and Overview of your business plan should be

Rashid [163]

Answer:

Because of its importance in summarizing your strategy, the Introduction and Overview of your business plan should be written last-B.

3 0

3 years ago

Zorn Co. budgeted $600,000 of factory overhead cost for the coming year. Its plantwide allocation base, machine hours, is budget

Amanda [17]

Answer:

False.

Explanation:

Given: Total budgeted factory overhead cost = $600000.

Plantwide allocation base= 100000 hours.

Now, finding plantwide factory overhead rate.

Formula; Plantwide factory overhead rate= $\frac{total\ budgeted\ factory\ overhead\ costs }{plantwide\ allocation\ base.}$

⇒ Plantwide factory overhead rate= $\frac{600000}{100000} = \$ 6 per\ hours$

Hence, Zorn´s plantwide factory overhead rate is $6 per hour not $3 per hour.

8 0

2 years ago

. How does analyzing fixed and variable costs help you to set a sale price that will generate profit? 2. How is profit affected

ELEN [110]

Answer:

1. Apart from helping to know the average cost of a product, analyzing fixed and variable cost will help to derive the break even point.

2. Profit will go down

Explanation:

1. The size of the selling price and the variable cost determine contribution per unit of a product. Contribution per unit is Price minus variable cost. This shows the contribution of sales revenue towards covering the fixed cost of a product.

2. Relevant range is the estimated or budgeted activity level which defines a business volume of production or operation, it is both maximum and minimum threshold within which the entity must operate to expect certain level of cost and revenue.

Sometimes fixed costs are fixed within a relevant range of activities and outside such range, fixed cost may become variable, which will all things being equal impact negatively on the price.

Also, within relevant range volume discount may be achieved and outside such range, this may be forfeited which, will also reduce profit all things being equal.

4 0

3 years ago

Last year vaughn corp. had sales of $315,000 and a net income of $17,832, and its year-end assets were $210,000. the firm's tota

KATRIN_1 [288]

I have the same question if anyone can help please let me know

4 0

2 years ago