Answer:
The journal entry to record this note collection carried out by the bank should be:
Dr Cash 21,200
Cr Notes receivable 20,000
Cr Interest revenue 1,200
Explanation:
Notes receivable is an asset account and it probably represented a sale made on credit by the company, so when it was collected, the amount should decrease and that is done by crediting it.
On the other hand, since only $20,000 belonged to the note, the rest ($1,200) must be recorded as interest revenue. Revenues are always credited.
Answer:
D) Dividend payout ratio
Explanation:
Internal Growth Rate of a firm is the maximum growth rate at which the firm can grow without involving external financing i.e. without assuming additional debt or equity infusion in the firm. At this level of growth the cash available from the operations can be used to fund the company.
It is calculated using the formula
IGR= ROA* b / (1-ROA * b)
where
IGR is the Internal Growth Rate
ROA is return on assets
b is the retention ratio or (1-dividend payout ratio)
To answer the question we look at each option
If ROA (Return on Asset) is decreased the numerator decreases and denominator increases in equation (1) and thus the Internal growth rate decreases, so ROA is not the answer
If Net Income is reduced the Return on Assets also falls thus as in the above case Internal growth Rate decreases
If retention ratio is reduced the numerator decreases and denominator increase leading to a fall in IGR
If dividend payout ratio is decreased the retention ratio increases leading to the increase in numerator and decrease in denomonator leading to an increase in the IGR. Thus Decreasing the dividend payout ratio will increase the IGR.
If Return on Equity is reduced i.e. indirectly Net Income is reduced for the same equity the similar effect as in part for Net Income and thus reduces the IGR.
So decreasing dividend payout ratio increases the interna growth rate of a firm
Answer:
Management
Explanation:
Management is an important part of the business organization. It focuses on manages the activities of the business organization. There are mainly five managerial functions that help the organization to run in a smooth manner and accomplish its goals and objectives in an efficient and effective manner.
The five managerial functions are planning, organizing, directing, controlling and the staffing, Each one is played an important role while managing the business activities.
Hence, the most appropriate word is management
Answer:
The correct answer is "Expert opinion".
Explanation:
- Perhaps the selection of acquiring computer systems based upon the whole demands including its firm entails professional judgment.
- Throughout this above-given scenario, Calista is when the firm Information technology's Manager has adequate understanding about either the firm's systems and sometimes even needs.
Answer:$1200
Explanation:
The maximum interest payable for year one of 2018 is 8% of $15000 which gives $1200.
If the investment income is greater than investment interest expenses of $1200 . The amount of investment interest expenses she can deduct is $1200.
