All categories

3 years ago

Loans that do NOT involve government cooperation, such as a guarantee or insurance, are known as

1 answer:

6 0

Loans that do NOT involve government cooperation, such as a guarantee or insurance, are known as CONVENTIONAL LOANS. It is a type of loan that has a fixed rate and terms and is usually associated with mortgage. Any government agency (i.e. Federal Housing Administration, Department of Veterans Affairs) does not have any involvement in conventional loans.

You might be interested in

A lottery winner can take $6 million now or be paid $600,000 at the end of each of the next 16 years. The winner calculates the

Semmy [17]

Answer:

Yes, her decision was correct because of Net present value rule.

Explanation:

the net present value (NPV) applies to a series of cash flows occurring at different times.

The present value of a cash flow depends on the interval of time between now and the cash flow. It also depends on the discount rate. NPV accounts for the time value of money. It provides a method for evaluating and comparing capital projects or financial products with cash flows spread over time, as in loans, investments, payouts from insurance contracts plus many other applications.

Time value of money dictates that time affects the value of cash flows.

5 0

3 years ago

Read 2 more answers

On February 1, 2021, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of

faltersainse [42]

Answer:

2021

revenue 2,666,667

we have cost for 2,000,000

income for 666,667

2022

revenue 3.278.400‬

cost 2,500,000

income 778.400‬

2023

revenue 2,054,933‬

cost 3,800,000

loss 1,745,067‬

Explanation:

2,000,000/ (2,000,000 + 4,000,000) = 1/3

in 2021 a third of the contract was complete therefore we recognize a third of revenue:

8,000,000 x 1/3 = 2,666,667

we have cost for 2,000,000

income for 666,667

2,500,000 / (2,500,000 + 3,600,000) = 0,4098

we recognize revenues for 40.98 of the total contract value.

8,000,000 x 40.98 = 3.278.400‬

cost 2,500,000

income 778.400‬

2023

we recognize the remaining revenue.

8,000,000 - 2,666,667 - 3,278,400 = 2.054.933‬ revenue

cost 3,800,000

loss 1,745,067‬

7 0

2 years ago

On May 1, Ramona and Santonio orally agree that Santonio will guide a party from the base of Mount McKinley to its summit and fr

yan [13]

Answer:

1.Contract is express

2.Contract executory

Please explanation below.

Explanation:

1)Contract is Expressed

Expressed contract consist of agreement in which terms are stated by parties either orally or in written .

2) The contract is executory

Since contract is performed only by Santonio and since Ramona will make payment on 1 june ,on 31 may it is still to be performed by ramona so the contract is executory (only part performance is made) .An executory contract is a contract that has not yet been fully performed or fully executed. It is a contract in which both sides still have important performance remaining.

4 0

3 years ago

Marigold Corp.budgeted manufacturing costs for 70000 tons of steel are: Fixed manufacturing costs $50000 per month Variable manu

Nataly [62]

Answer: $290,000

Explanation:

Flexible budget for 20,000 tons:

Fixed manufacturing costs (Period costs constant irrespective of tons produced) $50,000

Variable manufacturing costs

($12 × 20,000) $240,000

Total Manufacturing costs for 20,000 tons will be:

$50,000 + $240000 = $290,000

Note: Variable costs varies based on the number of units produced whereas Fixed costs are the period costs that are constant irrespective of units produced.

7 0

3 years ago

Read 2 more answers

Whispering Winds Company had the following two transactions related to its delivery truck. 1. Paid $250 for an oil change. 2. Pa

inessss [21]

Answer:

Journal Entries

Account Dr. Cr.

Repair and maintenance Expense $250

Cash $250

Delivery truck $800

Cash $800

Explanation:

Property, plant and equipment are reported in the Fixed asset of the balance sheet. These assets are the depreciated. Fixed assets are initially recorded at cost.

Initially the amount capitalized includes the acquisition cost or purchase price and any direct cost incurred to make asset ready to use.

Any cost incurred to improve the efficiency of the asset will also be capitalised. In this question oil change is a routine maintenance cost needed to operate the asset. Installation of Special gear unit actually improved the efficiency of the asset as a whole. So, it is capitalised.

8 0

3 years ago