Shoemaker Corporation Journal Entries
1. April 01, 2021
Dr Notes receivable 600,000
Cr Cash600,000
2. December 31,2021
Dr Interest receivable 42,075
Cr Interest revenue 42,075
3. April 01, 2019
Dr Cash 566,100
Cr Notes receivable 510,000
Cr Interest receivable 42,075
CrInterest revenue 14,025
Workings:
2.Interest revenue: $510,000 × 11% × 9/12 = $42,075
3.Interest revenue: $510,000 × 11% × 3/12 = $14,025
42,075+ 14,025=56,100
510,000+ 56,100= 566,100
Answer:
c.Moral hazard
Explanation:
Moral hazard can occur when banks take on excessive risk more than they would normally take on because they know they would be bailed out if they fail.
I hope my answer helps you
CPI reduces waste and non value added activities.
Answer:
c) are very short-term in nature and are offered to superior credit applicants.
Explanation:
Commercial bank term loans are most often used for short-term funding needs and granted to creditworthy applicants only.
The loan interest may be fixed or floating subject to applicants’ choices.
(a) Is correct but not enough compared to (c)
(b) Is not correct because it can carry floating rate also
(c) Totally correct in term of length and applicant
(d) Is correct but not enough compared to (c)
Complete Question:
<em>What term is used for the amount of time an activity can be delayed without delaying the early start date of any immediately following activities?</em>
Answer:
Free slack.
Explanation:
Free slack is a term is used for the amount of time an activity can be delayed without delaying the early start date of any immediately following activities.
Generally, in the execution of a project, when a task is delayed it normally affects the start or finishing time of the other tasks (successors) in a project. The amount of time that is permitted for an activity to be delayed without delaying the early start date of any immediately following (succeeding) activities refers to the free slack or having an adverse effect on entire project.
