Answer:
First Select Investors
Explanation:
With timely notice to the proper parties, Global Bank may collect payment on the note from First Select Investors.
Although Charlton is the maker of the $200,000 promissory note payable, and was directly issued to Development & Sales Corporation, the party that issued it to Global Bank is First Select Investors.
Hence, Global Bank has direct link to First Select Investors and will notify the later about payment of their account receivable.
Answer:
e. Minimize the weighted average cost of capital (WACC)
Explanation:
A: Earnings per share is linked to the stockholders' only, therefore, it cannot achieve the target capital structure. It is a wrong statement.
B: Minimizing the cost of equity is related to the equity only, so, it is also a false statement.
C: Cost of debt is only related to liabilities. It cannot minimize the total target capital structure. Therefore, it cannot be an answer.
D: It is out of question because target capital structure cannot obtain the bond rating.
E: Since weighted average cost of capital is the combination of debt and equity capital's cost, it can be minimized with the firm's target capital structure.
Answer:
c. In Paulson's general ledger, the ending balance for the Cash account will be correct. However, the ending balance for the Service Revenue account will be too high and the ending balance for the Unearned Service Revenue account will be too low
Explanation:
Around 15th November, Paulson Painting endured a $6,000 cash amount from Apex Inc. in replacement for painting services to be rendered in the month of December. While posting the journal insertions correlated to this amount, Paulson's controller debits the Cash statement for $6,000 as well as charges Service Revenue toward $6,000. The statement which best describes the results of this posting is that, <u>in Paulson's general ledger, the ending balance for the Cash account will be accurate. Nevertheless, the ending balance regarding the Service Revenue account will remain extremely high as well as the ending balance for the Unearned Service Revenue account will remain extremely low.</u>
Answer:
- <em>Underestimating your income is a conservative and healthy measure that can avoid financial problems.</em>
Explanation:
<em>Underestimating</em> your <em>income</em> is a conservative and healthy measure, such as it is overestimating your expenses.
Specially when your income is variable iit can be hard to predict. You will be safer both if your income lowers or your unpredictable expenses increase.
There are many unpredictable situations that could put you in a difficult situation: a disease, a natural disaster, the need to help a family member or friend in trouble. If any of these unfortunate circumstances arises and your budget is too tight, you could see yourself in financial trouble.
But, if you if all is smooth you will have in a happy situation, you will have a surplus which can use for savings, for an important purchase, or for vacations.
It is better to be cautious than to regret later!
Answer:
The answer is Option D. 1.68 times
Explanation:
The formula for equity multiplier is:
Equity Multiplier = Total assets ÷ Total stockholder's equity
In 2017:
Total stockholder's equity = Common stock + Retained earnings
Total stockholder's equity = $2890 + $700 = $3590
Total assets = $6,015
Now, putting these values in the above formula, we get,
Equity multiplier = $6,015 ÷ $3,590 = 1.68 times
