All categories

2 years ago

which type of account typically has very high liquidity, low or no interest, and low minimum balance?

Business

2 answers:

Aliun [14]2 years ago

8 0

Answer: Checking Accounts

Explanation:

The following are some type of accounts,

a). Checking Account- It gives the depositor the lowest level of interest and has a very high liquidity. This account has no or low minimum balance.

b). Savings Account- This has a low interest but gives the flexibility to the depositor to withdraw the money at anytime.

c). Money market account- This account type has a higher interest than any saving or checking account with some minimum balance requirements.

d). CD's (Certificate of Deposits)- This account type has the highest interest at the cost of locking up your funds for a certain period.

Therefore, Checking account is the correct option which has all the features low liquidity, low interest and low minimum balance.

sdas [7]2 years ago

6 0

Checking accounts: best for unrestricted access to funds; typically worst for earning interest.

Savings accounts: good for earning some interest with quick access to funds.

Money market accounts: can have higher interest than savings accounts, plus some check-writing and ATM access.

Certificates of deposit (CDs): highest interest rates in exchange for most-limited access to funds

You might be interested in

Cynthia, a sole proprietor, was engaged in a service business and reported her income on the cash basis. On February 1, 2013, sh

Sunny_sXe [5.5K]

Answer:

<h3>Cynthia and Dove Corporation</h3>

Any profits generated by Dove Corporation will be taxed to the corporation and also taxed to Cynthia as a shareholder whenever Dove distributes the profits as dividends. Taxing Dove and Cynthia creates a double taxation burden for both Dove and Cynthia. Dove Corporation does not get a tax deduction when it distributes dividends to Cynthia. Furthermore, Cynthia cannot deduct any corporation loss when incurred. These are unlike when the business was only a sole proprietorship.

Explanation:

a) Data and Calculations:

Dove Corporation

Balance Sheet

February 1, 2013

Assets

Basis to Dove Fair Market Value

Cash $ 80,000 $ 80,000

Accounts receivable 0 240,000

Equipment (cost $180,000; 120,000 320,000

depreciation previously claimed $60,000)

Building (straight-line depreciation) 160,000 400,000

Land 40,000 160,000

Total $400,000 $1,200,000

Liabilities and Stockholders' Equity

Liabilities:

Accounts payable—trade $ 120,000

Notes payable—bank 360,000

Stockholders' equity:

Common stock 720,000

Total $1,200,000

4 0

2 years ago

Caroline's manager notices that she exhibits an internal locus of control when she speaks about her work. her manager should ___

Ymorist [56]

Her manager should provide incentives such as merit pay or sales commissions.
Internal locus of control means that Caroline believes that her actions directly affect the consequences of those actions, which is why providing her with such incentives would have a great impact on Caroline and her work, and she would be even more productive.

4 0

3 years ago

A politician attempts to gain support for her campaign for city mayor by releasing a poll showing that almost 70 percent of resi

Dafna11 [192]

Answer: consensus

Explanation: In simple words, it refers to the psychological phenomenon which states that the likelihood that an individual is going to perform an activity increases when he or she thinks that their potential act aligns with the willingness of others that are related to the outcomes.

In the given case, the politician is trying to persuade that majority of the voters are in his favor. This idea will generate a perception that majority are in his favor so there must be something positive in him.

Hence we can conclude that he is using consensus.

8 0

3 years ago

Credit sales are recorded by crediting an accounts receivable.

Anna35 [415]

The answer to the sentence above is false based on the transaction above. Account Receiveable is an asset account which has "debit" as its natural balance. Recording credit sales will increase the account receivable balance and sales balance, thus an increase in account receivable balance occurs on the debit side.

8 0

3 years ago

Use a T-account analysis to determine the amount of cash paid to suppliers of merchandise during the reporting period if cost of

larisa86 [58]

Answer:

The amount of cash paid to suppliers of merchandise during the reporting period is $31

Explanation:

Inventory beginning balance is $90, ending balance is $93

Account payables beginning balance is $14, ending balance is $16

Cost of goods sold is $30

Using T accounts: Beginning Inventory + Purchases - Ending Inventory = Cost of Goods Sold.

Therefore Purchases = Cost of Sales - Beginning Inventory + Ending Inventory

Purchases = 30-90+93 = 33

<h2 />

In the Accounts Payable Account

Opening balance and Credit purchases are on the credit side, while payment to suppliers and closing balance are on the debit side

Therefore: Opening balance + Purchases during the period = Payments during the period + closing balance.

Hence: 14+33= payments during the period + 16

Payments during the period = 14+33 - 16 = $31

7 0

3 years ago