Answer:
The correct option is c. Purchases assets at a cost of $25,000,000.
Explanation:
An emergency loan can be described as a loan that can obtained on short notice by a borrower in to cover unexpected costs.
From the options, purchasing assets at a cost of $25,000,000 will leave Chester in a serious liquidity position as the it will take 94.92% [i.e. ($25,000,000 / $26,337,000) * 100] of its current cash balance and leave the company with just $1,337 current cash balance.
Because the next period's Cash Flows From Operations are expected to be the same as this period's, purchasing assets at a cost of $25,000,000 puts Chester at the greatest danger of needing an emergency loan.
Therefore, the correct option is c. Purchases assets at a cost of $25,000,000.
Answer:
The journal entry to record this should be:;
July 1, Year 202x, cash received as deferred revenue
Dr Cash 7,500
Cr Deferred revenue 7,500
Explanation:
Accrual accounting states that both revenues and expenses must be recorded during the periods that they actually occur, and not necessarily when any cash transfer is associated to them.
In this case, the adjusting entry for accrued revenue on December 31 should be:
December 31, year 202x, accrued revenue
Dr Deferred revenue 1,875
Cr Service revenue 1,875
Answer:
Fronting policy is a risk management technique in which an insurer underwrites a policy to cover a specific risk, but then cedes the risk to a reinsurer. Fronting policies are most commonly used by large organizations, and is a type of alternative risk transfer
Explanation:
Answer:
$63,679
Explanation:
Kl textiles
Disbursement Float can occur in a situation where a person, company or organisation spent an amount of money in which the amount spent has not be removed or taken out of the person, company or organisation
bank account. Example is written out a checks in which the checks has not be cleared form the company bank account till after some days
Disbursement float =
22 × $827 ×3.5
= $63,679
Therefore the amount of the firm's disbursement float will be $63,679 because Kl textiles writes 22 checks a day for an average amount of $827 each in which the checks generally clear the bank 3.5 days after it was written.
Answer:
account number needed , name of bank, withdrawing needs pin e.t.c
