Cash discount is a reduction in total price of goods and services for prompt payment.
Explanation:
It is given to enhance prompt payment and to discourage trade credit.
Let's assume a Company offers some certain percentage of discount for prompt payment. A goods cost #100,000 for instance. And then for payment within 10 days, 20% discount will be given, payment between day 11 to 15 days of purchasing the goods 15% discount and payment within 16 to 20 days attracts 10%. It means any customer who pays within the first 10 days of purchasing the goods get a discount of #20,000 (i.e 20% of #100,000), hence pays #80,000 for the good. A payment within day 11 to 15 of purchase gets 15% discount, so is allowed only #15,000 (i.e 15% of #100,000), so pays #85,000 while payment made within day 16 to 20 of purchase attracts only #10,000 discount (i.e 10% of #100,000), so he pays only #90,000. No discount will be given to payment made above 20 days of purchase and the full #100,000 will be paid.
Cash discount is also called Early payment discount
Answer:
$1,364
Explanation:
According to the MACRS a rental house is classified as the 27.5 year residential property. It is the first year after purchase and August is the 8th month of 2019 and so according to the MACRS depreciation table for the residential property the rate applicable for this property is 1.364%. Maximum depreciation deduction for the year 2019 is
Cost of House = $174,000
Cost of Land = $74,000
Cost of Building = $100,000
As depreciation on land is not applicable because it does not depreciate. The depreciation will be calculated using Building value
Depreciation = $100,000 x 1.364% = $1,364
Answer:
The correct answer is letter "B": large numbers of depositors withdrawing their deposits within a short period of time.
Explanation:
A bank run is a situation in which account holders massively withdraw their funds under the fear the financial institution will lose its liquidity. The situation gets to a point in which the bank is at risk of sensing all its reserves and fail to provide all its clients the money they deposited.
In the U.S. financial institutions with deposits between $16 and $122.3 million must have a minimum reserve of 3%. When the deposits exceed $122.3 million the minimum reserve increases to 10%. The rest of the money is reinvested by banks.
Answer:
However, the economy has been characterised by a structural shift in output over the past four decades.
Since the early 1990s, economic growth has been driven mainly by the tertiary sector – which includes wholesale and retail trade, tourism and communications. Now South Africa is moving towards becoming a knowledge-based economy, with a greater focus on technology, e-commerce and financial and other services.
Among the key sectors that contribute to the gross domestic product and keep the economic engine running are manufacturing, retail, financial services, communications, mining, agriculture and tourism.
Explanation:
South Africa’s economy has traditionally been in the primary sectors – the result of a wealth of mineral resources and favourable agricultural conditions.
His PMI insurance also known as his mortgage insurance
