Answer:
C- The term structure of interest rates and the time to maturity are always directly related
Explanation:
The term structure of interest rates represents the relationship that exist between interest rates and different terms (maturities). When it is graphed, the term structure receive the name of "yield curve".
Generally, yields increase at the same time maturity does it, this create an upward-sloping yield curve or a normal yield curve. But occasionally, long term yield can fall below short term yields, and this create an inverted yield curve that is regarded as it a recession is likely occurring or approaching.
Answer:
D) B and C would both be included in the journal entry
Explanation:
A deferred inflow of resources can be defined as an purchasing of net assets by the government of a country that is is going to be applied to a future reporting period.
Crediting the revenues control account tells weather cash has been received, or that a valid receivable exists. In practice, when property taxes are levied, a receivable is formed. The debit to property taxes that are receivable is offset by a credit to revenues to the level that the taxes are “susceptible to accrual;” that is to say, both measurable and available to pay liabilities of the fiscal period.
Answer:
option A. The loans provide Wren Corporation with a business bad debt deduction.
Explanation:
Bad Debt is an accounting term. it is used to denote a sad case where a borrower whose inability to pay back loan or funds borrowed from a creditor as a result of bankruptcy, mismanagement e.t.c. Bad Debt simply is cancellation (write-off) of an amount that is receivable in business.
Income taxation laws provides the avenue to granting a creditor to deduct any debt not repaid as a bad debt deduction, which will invariably reduce the taxable income.
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