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3 years ago

If a bank has a required reserve ratio of 20% and has required reserves of $300,000,000, how much does the bank hold in deposits

Business

1 answer:

matrenka [14]3 years ago

4 0

Answer:

$1,500,000,000

Explanation:

Calculation for how much does the bank hold in deposits

Using this formula

DEPOSIT=Required reserves/Reserve ratio

Let plug in the formula

DEPOSIT=$300,000,000/0.20

DEPOSIT=$1,500,000,000

Therefore how much does the bank hold in deposits is $1,500,000,000

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In a Bring Your Own Device (BYOD) policy, the user acceptance component may include separation of private data from business dat

disa [49]

Answer:

True

Explanation:

Bring your own device policy is is a policy whereby companies allow employees to use their laptops, smart phones, tablets and the likes for official purposes. It is mostly used by small scale firm who can't afford to get all of these gadgets for their workers. Separating of private data and business data included in the acceptance component will help to maintain confidentiality of company's files that are on the employee's device.

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3 years ago

In a bill-and-hold arrangement, revenue only can be recognized after the sale of the goods to the end user.

Verdich [7]

The correct answer is True. When ownership of the items passes to the customer, revenue is realised. In addition to the requirements for determining when control transfers, a reporting entity must also satisfy certain additional requirements for a customer to have achieved control in a bill-and-hold arrangement.

A bill and hold sales arrangement allows for payment in advance of the item's delivery. This is a sales agreement when a product seller invoices a consumer up front but doesn't actually ship the thing until later.

In a bill and hold transaction, the vendor does not deliver the purchased goods to the customer, but the associated income is still recorded. Under this structure, revenue cannot be recognised until a number of severe requirements have been satisfied. The possibility of falsely recognising revenue too early exists otherwise.

To learn more on bill and hold arrangement

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1 year ago

Which of the following is a nonmanufacturing business where process costing would most likely be used? An auto body shop. A furn

solmaris [256]

All of them are the non-manufacturing business where process costing would most likely be used.

Explanation:

All are non-manufacturing business which are as follows,

An auto body shop.
A furniture repair shop.
A laboratory that tests water samples for lead A tailoring shop.
A beauty shop.
Non-manufacturing business costs refers to those business where it is incurred outside the factory or production unit
Non-manufacturing costs includes,
selling expenses
general expenses
Selling Expenses
It is also called as selling and distribution expenses.
Non-manufacturing expenses have no impact on the production cost of the company due to their period costs.

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3 years ago

Testbank Multiple Choice Question 81 At the beginning of 2020, Sunland Company issued 8% bonds with a face value of $5700000. Th

laila [671]

Answer:

$527,737

Explanation:

The Bond Payment or Coupon always includes the Interest Portion and the the Capital Potion. The question only requires the Interest Portion of the Bond.

The Bond Parameters can be set as :

PV = - $5,259,870

FV = $5,700,000

PMT = ($5,700,000 x 8%) ÷ 2 = $228,000

N = 5 x 2 = 10

YTM = 10 %

P/YR = 2

Constructing an amortization schedule for 2020 gives :

Date Capital Portion Interest Balance

June 30 $34,994 $262,994 $5,294,864

Dec 30 $36,743 $264,743 $5,331,607

Total $71,737 $527,737 $5,331,607

therefore,

The amount of interest expense to be reported for 2020 is $527,737

7 0

2 years ago

A year ago, Jasper Inc. sold 20-year bonds at par with a coupon rate of 4.5 percent and semiannual payments. The face value of e

scoray [572]

Answer:

= $877.32

Explanation:

The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV).

Value of Bond = PV of interest + PV of RV

The value of bond for Jasper Inc can be worked out as follows:

Step 1

PV of interest payments

Semi annul interest payment

= 4.5% × 1000 × 1/2

= 22.5

Semi-annual yield = 5.6/2 = 2.8% per six months

Total period to maturity (in months)

= (2 × 19) = 38 periods (Note it was sold a year ago)

PV of interest =

22.5 × (1- (1+0.028)^(-38)/0.028)

= 22.5 ×23.20871226

= 522.196

Step 2

PV of Redemption Value

= 1,000 × (1.056)^(-19)

= 355.128

Price of bond

= 522.19 + 355.12

= $877.32

5 0

3 years ago