Buying an existing business is beneficial because it does not require large initial capital.
Option a
<u>Explanation:
</u>
The idea of buying an existing business is much easier than that of starting a business. Buying an existing business includes lesser risks. When we are buying a business, it means that we are taking over an operation that is already generating some profits or cash flows.
Moreover, it does not need enormous amount of capital since, majority of the setups will already be there and all we have to do is just to reconstruct and maintain it. We cannot be sure that whether the previous business holder had professional financial dealings with the government side so, it sometimes may become our duty to initiate the papers and get financial support from the government if required.
In addition, there are cases in which the lenders that the previous owner dealt with will not be the same as ours. Therefore, the answer would be option a.
Answer:
= $4902.36
Explanation:
The amount due on the loan would be equal to the total accrued interest plus the principal amount. Note that, since Sally did not pay any amount off the loan in the course of the three years, the interest due per month would be equal to the monthly interest rate plus the he unpaid balance till date.
To determine the amount due, we would compound $4,000 at a monthly interest rate of for 36 months
Amount due on loan = Loan amount × (1+r)^n
Loan amount - 4,000, r - monthly interest rate - 6.8%/12 = 0.566%, n- 3× 12= 36
Loan amount due = 4000 × (1.005660^(36)
= $4,902.36
Answer:
shortage
Explanation:
Here are the options to this question :
there is a monopoly profit for suppliers.
shortage
price floor
lack of technological progress.
There is a shortage when demand for a good exceeds supply. The price at this point is below equilibrium price. As a result of the shortage, prices would rise until it reaches equilibrium price.
A price ceiling not a price floor is usually associated with an excess of demand over supply
Price ceiling is when the government or an agency of the government sets the maximum price for a product. It is binding when it is set below equilibrium price.
Answer:
$16,660
Explanation:
Given that,
Merchandise inventory sold on account = $17,000
Payment terms are as follows: 2/10, n/30
Cost of merchandise sold = $13,000
Therefore, the amount of cash was collected by Devonshire is the amount of cash after deducting the 2 percent of merchandise inventory.
Cash was collected by Devonshire:
= Amount of merchandise sold × (1 - 2%)
= $17,000 × (1 - 0.02)
= $17,000 × 0.98
= $16,660
Answer:
Dr Salaries expense $7,552
Cr Accrued salaries $7,552
Being entries to record salaries payable as at year end
Explanation:
When an expense is incurred but yet to be paid by an organization, the entries required are
Dr Expense (p/l)
Cr Accrued expense (B/s)
when payment is made
Dr Accrued expense (B/s)
Cr Cash account
Given that Zoey Bella Company has a payroll of $9,440 for a five-day workweek and the year ends on a Thursday. As such, the company as at 31 December has incurred salaries for 4 days. This has to be accrued for but first to calculate the amount
= 4/5 * $9,440
= $7,552
Hence adjusting entry required on December 31, assuming the year ends on a Thursday
Dr Salaries expense $7,552
Cr Accrued salaries $7,552
Being entries to record salaries payable as at year end
