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3 years ago

What does it mean to set up an ""automatic deposit"" and why is this a good savings strategy?

Business

1 answer:

Anna71 [15]3 years ago

5 0

Answer:

It is an Eletronic Payment Method

Explanation:

An automatic deposit is a payment processing option where funds are deposited directly into the recipients' bank account. It is an electronic service applied in paychecks, tax refunds, and pensions. Individuals can set up such a service with their banks or employers.

As a saving strategy, an employee instructs the employer to make automatic payments to their savings account. The employee will decide the amount they want to save. The amount is deducted from their pay and send to their savings account. Business people can also instruct their bank to deduct a certain amount from the business account and send it to their savings account.

This strategy is suitable for saving because it's efficient. The amount meant for savings will not be available for other purposes. The automatic deposit system ensures the amount intended for saving is saved.

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Wildhorse Delight, Inc. charges an initial franchise fee of $74,700 for the right to operate as a franchisee of Wildhorse Deligh

ryzh [129]

Answer:

Cash 24,900 debit

Account Receivable 51,800 debit

Franchise fee revenue 74,700 credit

training services revenue 2,000 credit

Explanation:

The training services and the francise fee are separated revenues, so we have to use diferent account.

we are only given with the information of a initial payment, so the difference will part of account payable.

No information about the training being paid in cash, so we also assume this services were performed on account.

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3 years ago

Advantages and disadvantages of price optimization system

ladessa [460]

Answer:

Explanation:

The price system and I assume you mean the free price system, is very important in an economy. There are advantages and disadvantages to it.

In a free price system, the forces of supply and demand determine prices. The most efficient use of resources is when supply matches demand. Supply and demand are equal when the market determines the price at which a number of goods supplied equals a number of goods demanded. The price system also allows us to buy many products. Manufacturers are willing to make products when they can make money. When supply equals demand, businesses are maximizing the profit potential at the given price level.

One disadvantage of the price system is that for certain products, the costs of setting up the industry are so high, there is only one seller of the product. In cases like these, such as with the electric and the natural gas companies, or with the water companies, without government regulation, prices could be very expensive since they are the only provider of the product. In these cases, the government needs to regulate these industries because the price system would lead to very high prices for water, electricity, and natural gas. Since the setup costs for these industries are so high, there is no competition for these companies. This could cause consumers to make some very difficult choices if the prices are regulated by the government.

8 0

4 years ago

The break-even point is that level of activity where:

ycow [4]

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3 0

3 years ago

Exercise 9-1 Classifying liabilities LO C1 The following items appear on the balance sheet of a company with a one year operatin

nignag [31]

Answer:

1. Notes payable (due in 13 to 24 months) - L

Long term because period of payment is over a year.

2. Notes payable (due in 6 to 11 months). - C

Current because period of payment is under a year.

3. Notes payable (mature in five years). - L

Long term because it will mature after a period of a year.

4. Current portion of long-term debt. - C

Current because it deals with payment for the year.

5. Notes payable (due in 120 days). - C

Current as it matures in less than a year.

6. FUTA taxes payable - C

Taxes are for a single period making them current.

7. Accounts receivable - N

This is an asset not a liability

8. Sales taxes payable. - C

As this is this for the year, it is current.

9. Salaries payable. - C

For the period so they are a current liability.

10. Wages payable - C

Concern one period so are a current liability.

7 0

3 years ago

Two firms with identical capital intensity ratios are generating the same amount of sales. However, Firm A is operating at full

Gemiola [76]

Answer:

True

Explanation:

Firm A is operating at full capacity, if its sales keep increasing, then t will need to invest to expand its production capacity. Since firm B is operating below full capacity level, if its sales keep increasing it will have some spare production capacity it can use before operating at full capacity.

Therefore firm A will need to invest in an expansion of its production capacity while firm B can keep operating without new investments.

7 0

3 years ago