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3 years ago

Why is the safety of principal the primary consideration in a savings plan?

Business

1 answer:

gulaghasi [49]3 years ago

3 0

Answer:

In simple words, When it comes to conserving money, the most crucial factor to remember is the protection principle. When you save enough money beyond what you'll need for short-term objectives and emergencies, you'll have money to invest. Professionals advise saving one to two years' worth of account value in a contingency savings.

Thus, protecting principal is the core focus of the managers in savings plan.

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The FTC regulates businesses to prevent price-fixing and similar monopolistic practices. What is the main reason the FTC discour

Irina18 [472]

The answer is B, Monopolies limit competition, which unbalance forces that rregulate the market system

7 0

2 years ago

Read 2 more answers

6. Assuming the partial billing was approved for payment and the expenditure and liability (contracts payable) was recorded for

jenyasd209 [6]

Answer:

Option A, Credit to Cash, $560,000

Explanation:

As per the data given in the question,

Expenditure and liability = $700,000

Retaining percentage = 20%

Assuming the partial billing was certified for expenses and payments and liability was approved for amount $70,000. Though, Oxford has a policy not to pay 100 percent, but to retain 20 percent as a retained percentage.

So, $700,000 - $700,000 × 20%

= $700,000 - $140,000

= $560,000

Therefore, The entry to record the approved payment and retained percentage would include:

Option A, Credit to Cash, $560,000

8 0

3 years ago

The volume of international trade is governed by factors including the level of domestic economic activity (for example, prosper

Marat540 [252]

Answer:

True

Explanation:

International trade is trade across national boundaries and it includes the import and export of goods and services. An economic prosperity is synonymous with rising incomes and it would increase the propensity to import; that is, people in the domestic economy now have more incomes to spend on imports. Alternatively, a recession would lead to a fall in incomes and imports, and also a fall in investment which conseqeuntly reduces exports volumes.

Trade restrictions (protectionism) such as tariffs, quotas, competitive devaluation, administrative complexities, export subsidy hinder free trade and they could reduce the volume of imports into a country. This is because trade restrictions would make imports to be more expensive; the aim might be that the government is trying to correct a current account deficit. However, the effectiveness of trade restrictions in reducing import volumes and influening export is dependent on the price elasiticty of demand for imports and exports, the quality of a country's good or service, and how the country's rate of inflation compares with that of other countries.

4 0

3 years ago

At year-end (December 31), Chan Company estimates its bad debts as 0.70% of its annual credit sales of $862,000. Chan records it

KiRa [710]

Answer: Please see the required journals below:

December 31:

Debit Bad debt expense $6,034

Credit Allowance for doubtful accounts $6,034

February 1:

Debit Allowance for doubtful accounts $431

Credit Accounts receivables $431

June 5:

Debit Cash $431

Credit Bad debt recovery (income statement) $431

Explanation: The company estimates its bad debt expense as percentage of sales. In this case 0.7% of its annual sales of $862,000 was deemed as uncollectible, that is, 0.7% x $862,000 = $6,034. The required journals to recognize this bad debt expense is provided above. However, since there was an existing provision, which resides in the allowance account, a write-off would definitely hit that account in order to extinguish the accounts receivable portion. Upon recovery of the write-off, we cannot reinstate the receivable since it was already extinguished but we need to recognize the recovery as a gain.

3 0

3 years ago

Read 2 more answers

Finer Company uses a sales journal, purchases journal, cash receipts journal, cash payments journal, and general journal. Journa

BaLLatris [955]

Answer:

Finer Company

Sales Journal:

May 7 Debit Accounts Receivable (J. Dryer) $1,527

Credit Sales Revenue $1,527

To record the sale of goods on terms 2/10, n/30, via invoice no. 5704.

May 12 Debit Accounts Receivable (R. Lamb) $421

Credit Sales Revenue $421

To record the sale of goods on terms n/30, via invoice no. 5705.

May 25 Debit Accounts Receivable (T. Taylor) $691

Credit Sales Revenue $691

To record the sale of goods on terms n/30, via invoice no. 5706.

Explanation:

a) Data and Analysis for Sales Journal:

May 7 Accounts Receivable (J. Dryer) $1,527 Sales Revenue $1,527 terms 2/10, n/30, invoice no. 5704.

May 12 Accounts Receivable (R. Lamb) $421 Sales Revenue $421 terms n/30, invoice no. 5705.

May 25 Accounts Receivable (T. Taylor) $691 Sales Revenue $691 terms n/30, invoice no. 5706.

8 0

2 years ago

Why is the safety of principal the primary consideration in a savings plan?​

Why is the safety of principal the primary consideration in a savings plan?