Answer:
A. always increase with output.
Explanation:
There are basically 2 groups of cost namely; Fixed and variable cost.
The fixed cost are usually like sunk cost that will be incurred irrespective of how many units are produced.
Total variable costs refers to all elements of cost that vary proportionately with the level of activities or output. A good example is the direct material cost.
It is the total of the marginal cost over the units produced. The right answer is A. always increase with output.
India is the country projected to be the world's third major economic power within 10 years. It will provide information technology and software services to companies in other countries. Harvard researches project that this will happen because India is seeing a constant 7% annual growth rate at present. If this continues, they will be one of the leading countries for economic power compared to their South Asian rivals, particularly, China.
Answer:
Therefore I can borrow $19646.12 from E-Loan.
The interest I will pay for the loan is $1,857.88.
Explanation:
The formula of present value is
PMT = The monthly payment = $448
i= Rate of interest per period 
n = The number of month = 48 months
Therefore
≈$19646.12
Therefore I can borrow $19646.12 from E-Loan.
The interest = Paid amount - Loan amount
=$[(448×48)-19646.12]
=$1,857.88
The interest I will pay for the loan is $1,857.88.
Answer:
<h2>The journal entry is shown below:</h2>
Explanation:
The journal entry for recording the establishment of the fund is as:
On September 1
Petty cash A/c.....................Dr $250
Cash A/c...........................Cr $250
Being recording the petty cash in the books
As creating the fund for the petty cash in the books, the account of petty cash is debited as there is increase in the assets which is debited. And the petty cash is created against cash. Therefore, the cash account is credited.
Answer:
The explanation is given as follows.
Explanation:
<u>Task 1: </u>
<u>The higher the percentage of assets a bank holds as loans, the higher the capital requirement.</u>
When the owners of the bank borrow $100 to supplement their existing reserves , both reserves and debt increase by $100 , therefore increase in debt as in any balance sheet , the total value of accounts on the left hand should be equal to the right hand , so when there is increase in reserves , there will be increase in debt.
<u>Task 2:</u>
<u>It specifies a minimum leverage ratio for all banks
</u>
leverage ratio initially = total assets / capital = 1750 / 125 = 14
leverage ratio new value = total assets / capital = 1850 / 125 = 14.8 ( the assets increase by $100 with increase in reserves)
<u>Task 3</u>
<u>Its intended goal is to protect the interests of those who hold equity in the bank.</u>
Capital requirement are there to ensure that bank have enough capital to repay the depositors and debtors and if a bank holds a higher percent of risky assets , capital requirements will be higher so that the bank remains solvent hence option a is right answer.
