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3 years ago

Notes, bonds, certificates, mortgages, leases or other agreements between a lender and a borrower are collectively called:

1 answer:

8 0

Notes, bonds, certificates, mortgages, leases or other agreements between a lender and a borrower are collectively called debt instruments. These are papers or electronic obligations which enable an issuing party to be able to raise funds by making a promise to repay the lender in agreement with the terms and conditions of a contract. It is a legal enforceable evidence of a debt. This document is important because it makes the payment enforceable legally and it would increase the transferability of the obligation. These can be long term or short term obligations. Short term are those to be paid within a year while long term are those paid periodically for more than a year.

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John's job provided the main income for his family. He died unexpectedly and had no life insurance. The probable financial conse

Leto [7]

Answer:

An increase in income and expenses

Explanation:

When the main provider of a family dies and he/she doesn't have any type of life insurance, then the whole family's economy will suffer. Their total income will probably plummet. Besides losing John's income, his family must all the expenses related to his death, e.g. burial. As a terrible consequence, John's family will see their standard of living decrease.

8 0

3 years ago

The price elasticity of demand for beef is about 0.60. Other things equal, this means that a 20 percent increase in the price of

givi [52]

Answer:

Quantity of beef demanded will decrease by 12%

Explanation:

Data provided in the question:

Price elasticity of demand for beef, Ed = 0.60

Increase in the price of beef = 20%

Now,

Price elasticity of demand for beef,

Ed = [ Percentage change in Quantity ] ÷ [ Percentage change in price ]

0.60 = [ Percentage change in Quantity ] ÷ 20%

Percentage change in Quantity = 0.60 × 20%

Percentage change in Quantity = 12%

Also,

Price and Quantity are inversely proportional

Hence,

With the increase in price, the quantity will decrease

Therefore,

Quantity of beef demanded will decrease by 12%

3 0

3 years ago

La belle released a cut glass bottle of perfume at $299 per item, even though its major competitor prices its signature scent at

sergejj [24]

<span> psychological pricing</span>

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3 years ago

Read 2 more answers

Assume that the total cost of a project is $570,000 and that it is fully depreciable using a straight-line method over 6 years.

Lera25 [3.4K]

Answer:

So the depreciation in year 1 is $95,000

Explanation:

Depreciation is the accounting method that is used to allocate cost of an asset over its useful life. It is assumed that an asset losses values over a period and the salvage or terminal value is the value of the good after its useful life has ended.

Straight line method of depreciation assumes equal allocation of depreciation expense over the useful life of an asset.

In the given the asset value is $570,000 and the terminal value is $0

Using the formula

Depreciation= (Value of asset- Salvage value)/Number of useful years

Depreciation= (570,000-0)/6

Depreciation= $95,000 paid equally for 6 years

So the depreciation in year 1 is $95,000

4 0

3 years ago

On December 31, 2015, Waterway Industries is in financial difficulty and cannot pay a note due that day. It is a $2900000 note w

iris [78.8K]

Answer:

(a) $210,000

(b) $351,500

Explanation:

(a) Given that,

Fair value of equipment = $1,440,000

Face Amount of the note = $1,230,000

Gain on sale:

= Fair value of equipment - Face Amount of the note

= $1,440,000 - $1,230,000

= $210,000

(b) Given that,

Accrued Interest Payable = $290,000

Interest rate = 5%

Gain on the partial settlement and restructure of the debt:

= Accrued Interest Payable + (Face amount of note × Interest rate)

= $290,000 + ($1,230,000 × 5%)

= $290,000 + $61,500

= $351,500

4 0

3 years ago