The time when it's smrt for a person to acquire personal debt; or nott rather smart but a viable way of increasing useful capital, would be when one is investing in himself. An example of this would be education for example, where students take out student loans to continue university education.
The entity that pledges to make the interest and maturity payment for bond issues is called the <u>issuer.</u>
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<h3>Who is a Bond issuer?</h3>
A bond is a completely fixed instrument that reflects an investor's debt to a borrower.
Bonds terms and conditions include the end date when the capital of the loan is scheduled to be paid to the bond owner with a fixed or variable interest payment.
Bond Issuers are businesses or entities that generate and take loans from people who buy bonds in exchange for periodic interest and repayment of the principal amount when the bonds mature.
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Answer:
3 billion
Explanation:
the financial account will be the cash inflow less the cash outflow:
Increase in foreign holdings of assets in the United States = $4 billion Increase in U.S. holdings of assets in foreign countries = -$1 billion
4 billion of dollar enter the US from aboard while 1 billion left the country with destination aboard in total the financial account will be:
4 billion - 1 billion = 3 billion
Answer:
The answer is:
Disagree
The matching principle is violated
Explanation:
The order of a customer worth $40, 000 was received at year end. However, the merchandise will only ship in the year following the fiscal year. When goods are shipped, revenue is recognised on shipping the goods or receipt of the goods by the customer. According to the information provided, merchandise will only be shipped in 2021, therefore the customer will only receive the goods in 2021. Given this information, recognising revenue in the current period would be an incorrect treatment of the transaction and contravene the matching principle. This principle indicates that revenue and the costs associated with the revenue should be recognised in the same period.
The sale should not be recognised in 2020 because the goods' delivery and the costs incurred in delivering those goods will only be incurred in 2021. No indicated payment, cash or otherwise, was received in lieu of this transaction. Recognising this sale in the income statement and the associated asset in the statement of financial position could be misconstrued as an attempted enhancement of Pastel Inc.'s financial position for the 2020 fiscal year end.