Answer:
10%
Explanation:
Use future value formula
Future Value = Present Value ((1+r)^n)
26,600 = 20,000 ((1+r)^3
26,600/20,000 = (1+r)^3
1.33 = (1+r)^3
1.33^1/3 = 1+r
1.0997 = 1+r
1.0997 - 1 = r
r = 0.997 = 9.97% = 10% (rounded of to the nearest whole percentage)
Answer:
b. credit to Rent Revenue of $3,200
Explanation:
Cash collected in advance results in the the creation of an asset and a liability. Hence a debit to cash account and a credit to deferred revenue. When the revenue is earned, it is recognized as a credit to revenue and a debit to deferred revenue with the amount earned.
Amount earned as at December 31
= 1/3 × $9,600
= $3,200
Entries required
Debit Deferred Rent revenue $3,200
Credit Rent Revenue $3,200
Being entries to recognize revenue earned as at December 31
Answer:
Invoices should be paid on the last day of the discount period.
Buyers should take advantage of early payment discounts.
Explanation:
Cash management can be regarded as
process involvinh collection and management of cash flows. Cash management is very crucial for individuals as well as companies as far as financial stability is concerned. It should be noted that good cash management practices involving inventory purchases;
✓Invoices should be paid on the last day of the discount period.
✓Buyers should take advantage of early payment discounts.
Answer: Recruitment
Explanation: In simple words, recruitment refers to the process of selecting the suitable employees within an organisation. It involves setting the criteria of selection, attracting the candidates and appointing them in the job they seem capable of.
In the given case, Marisol is hiring the employees and also evaluating the tasks to be performed in the new job.
Hence we can conclude that the correct option is B.
Answer:
- Financial institutions, such as investment banks, provide expertise in the acquisition of funds.
- The investment banking institution will allow the Gaga Enterprises CFO to raise more money at a lower cost per dollar raised
Explanation:
In the given scenario we want to compare help in raising capital using a financial institution versus raising it directly in the financial markets.
When raising capital using financial markets it is more expensive because the company will need to give out ownership rights in the company when they sell shares.
However when financial institutions provide the capital, there is a lower cost per dollar raised compared to sale of shares.
Also financial institutions act as financial advisors to their clients. So they will provide expertise in the acquisition of funds.
