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serg [7]
3 years ago
5

Suppose Cho comes into a large sum of money and decides to lend it out to

Business
1 answer:
Ierofanga [76]3 years ago
8 0

Answer:

C. Adverse selection.

Explanation:

Adverse selection occurs when the participants in a economic transaction do not have the same amount of information about each other: either the buyer has more information than the seller, or the seller has more information than the buyer.

In the question, we have an example of adverse selection because Cho does not have enough information about the buyers (the borrowers), and she does not have a good way to obtain that information.

For that reason, she decides to give the money to the bank, an institution with much more capacity and information about the borrowers. Like this, she is solving the problem of adverse selection.

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Which of the following will increase a company’s current liabilities? You may select more than one answer.
vichka [17]

Answer:

A company purchases inventory on credit.

Explanation:

Current liabilities are those that have to be settled within the fiscal year. The statement above does not specify if the credit has to be paid within the fiscal year, but most likely it has to, because inventories do not usually represent a long-term debt.

So under this sceneario, purchasing inventory on credit would represent an increase in the current liabilities of the firm.

8 0
3 years ago
Early personal computer users remember the cumbersome, user-unfriendly "DOS" system. When Apple introduced System 1 and Microsof
Aleksandr [31]

Early personal computer users remember the cumbersome, user-unfriendly "DOS" system. When Apple introduced System 1 and Microsoft introduced Windows, both of which were much easier to use, these new products diffused rapidly because of their relative advantage .

Option A

<u>Explanation: </u>

A product's dominance and market appeal over similar items. A competitive advantage is usually accomplished by giving better value to customers through either reducing prices or delivering added quality and service that justify higher costs.

That idea is based on consumer brand and product perceptions and does not necessarily reflect the actual characteristics of this product or service. The definition helps companies to consider that customers would choose to use this product or whether a rival would rather remain faithful to the already existing product.

8 0
3 years ago
Prepare journal entries for each transaction listed. (If no entry is required for a transaction/event, select "No Journal Entry
AysviL [449]

Answer:

The journal entries are shown below:

Explanation:

According to the scenario, the journal entries for the given data are as follows:

(1). Jun.30   Bad Debt expense A/c Dr $12,800

                   To Allowance for Doubtful A/c $12,800

                    (Being the bad debt expense is recorded)

(2). July       Allowance for Doubtful A/c Dr $6,400

                   To Accounts Receivable A/c $6,400

                    (Being the customer balance written off is recorded)

7 0
3 years ago
On July 1, Marin Inc. purchases 440 shares of its $5 par value common stock for the treasury at a cash price of $12 per share. J
GrogVix [38]

Answer:

Explanation:

The journal entry is shown below:

On July 1

Treasury stock A/c Dr $5,280

        To Cash A/c $5,280

(Being purchase of treasury stock for cash is recorded)

The computation is shown below:

= Number of shares purchased × cash price per share

= 440 shares × $12

= $5,280

All other information which is given is not relevant. Hence, ignored it

8 0
3 years ago
The amounts for recording properties and services purchased by a business are determined using the:______.
Alex17521 [72]

The amounts for recording properties and services purchased by a business are determined using the cost concept.

<h3>Which principle determines the amount initially entered into the records for purchases?</h3>

A principle of accounting establishes the initial amount entered for purchases in the accounting records. According to the cost idea of accounting, all purchases of items (such as assets or items required for spending) should be recorded and kept in books at their original cost. Therefore, unless specifically indicated differently, it should be understood that an asset's value on a balance sheet represents its cost. Let's use the case of a company that pays cash or bank for a building worth $200,000. The worth of the building will be recorded in the accounting records using the cost concept of accounting, which equals $2,000,000. After four years, the building's worth increased to $1,000,000.

To learn more Cost concept, Visit:

brainly.com/question/24077535

#SPJ4

5 0
2 years ago
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