Answer:
The answer is true
<u>Explanation:</u> novation is the process in which an old contract is substituted by a new contract through an agreement .All rights and duties under old contract are being terminated.
if parties write a novation, it will effectively nullifies the former contract.In novation one of the initial parties is replaced by new party.
Novations are most frequently used in corporate takeovers and sales of businesses.
A novation is same as an assignment where one party transfers interest in property or a business to third party as opposed to transferring the entire entity.
So is novation is written between the parties .They need not to discharge the old contract by expression.It will be automatically discharged if it's terms are inconsistent with new contract.
Answer:
YES
Explanation:
If a stock you own is worth say $30,000 and you eventually sell it for $10,000, that is considered a loss on your taxes and you can count it as a loss on your taxes.
The situation given in the scenario is obviously that of capital erosion or capital loss.
Just like it would have been counted as capital gains if you had made a profit on the sale of the shares which would have been taxable, so also is it possible to make tax deductions on your returns when you make capital losses.
Hence, the loss amount can be deducted (offset) from other capital gains or ordinary income in your tax return.
Answer:
a. In managing a firm's accounts receivable, it is possible to increase credit sales per day yet still keep accounts receivable fairly steady, provided the firm can shorten the length of its collection period (its DSO) sufficiently.
Explanation:
It is possible to increase the credit sales without even increasing the accounts receivables, we will only have to shorten the Days sales outstanding.
mathematically:
DSO = Accounts receivables / Annual sales / 365
Answer:
The balloon payment for this loan would be $581,213.92. This can be calculated by taking the original loan amount of $1,000,000, multiplied by the interest rate of 9%, then multiplied by the difference in the amortization period (20 years) and the loan term (7 years). This equals $540,000. Finally, add the original loan amount to the interest amount, resulting in $1,540,000. This is the total amount due at the end of the loan term, or the balloon payment.
Explanation:
