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3 years ago

Define the term collateral and include two examples

1 answer:

5 0

Collateral is an asset or piece of property that a borrower offers to a lender as security for a loan. ... An example of unsecured lending is a business credit card. Borrowers do not offer collateral when using a credit card. Since the loan is unsecured, credit cards typically carry higher interest rates.

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Who is responsible for the actual performance of service tests and periodic inspection of fire detection and alarm systems

I am Lyosha [343]

Owner is only responsible.

Owner

Owner is the one who owns the business, create business plans , different goals, & mainly ensures that there business would last forever.
He is never engaged in day to day activities but always do the proper inspection of all the works in all the departments.
Manages the budget, sales forecasting, planning, organizing in all the process they used to work as a leader.

Alarm systems

These are the systems who had the automatic sensor for smoke, fire, & other fire related emergency are detected.
They have different pitch of sounds according to the places; i.e. at required place they have high sound and vice versa.
They used to activate Automatically when any heat or fire related substances come closer to it.

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2 years ago

The first step to a successful value-driven marketing strategy is to determine whom to serve with a market offering. to make thi

PSYCHO15rus [73]

The two activities to serve with a market offering. to make this decision, marketers engage are segmenting and targeting.

Segmentation is the process of classifying the market into several accessible groups. Targeting is the process of focusing on a specific market segment in order to offer products from all market segments.

There are many ways to segment your target market. Geographic - By Country, Region, State, City, Neighborhood. Psychographic - by personality, risk aversion, values, or lifestyle.

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1 year ago

For each of the following unrelated situations, calculate the annual amortization expense and prepare a journal entry to record

Montano1993 [528]

Answer:

(a) Debit Amortization expense - Patents for $43,750; and Credit Patents for $43,750.

(b) Debit Amortization expense - Patents for $5,230; and Credit Patents for $5,230.

Explanation:

(a) A patent with a 10-year remaining legal life was purchased for $350,000. The patent will be commercially exploitable for another eight years.

Annual amortization expenses = Purchase cost of the patent / Number of commercially exploitable years = $350,000 / 8 = $43,750

Therefore, the journal entries will look as follows:

General Journal

Description Debit ($) Credit ($)

Amortization expense - Patents 43,750

Patents 43,750

(To record patent amortization.)

(b) A patent was acquired on a device designed by a production worker. Although the cost of the patent to date consisted of $52,300 in legal fees for handling the patent application, the patent should be commercially valuable during its entire remaining legal life of 10 years and is currently worth $400,000.

Annual amortization expenses = Legal fees / Remaining legal life = $52,300 / 10 = $5,230

Therefore, the journal entries will look as follows:

General Journal

Description Debit ($) Credit ($)

Amortization expense - Patents 5,230

Patents 5,230

(To record patent amortization.)

(c) A franchise granting exclusive distribution rights for a new solar water heater within a three-state area for five years was obtained at a cost of $70,000. Satisfactory sales performance over the five years permits renewal of the franchise for another three years (at an additional cost determined at renewal).

Annual amortization expenses = Cost of acquiring the franchise / Number of years acquired = $70,000 / 5 = $14,000

Therefore, the journal entries will look as follows:

General Journal

Description Debit ($) Credit ($)

Amortization expense - franchise 14,000

franchise 14,000

(To record franchise amortization.)

4 0

3 years ago

_____ are expense items that do not become part of a final product. select one:

yarga [219]

Business services are expense items that do not become part of a final product.

Business services are intangible items such as IT, finance, management, shipping and more. These services support each other but do not become part of the final product. Installations and supplies are both part of the final product. Supplies to build and installations to put together.

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3 years ago

When do many companies expect to have a net loss

VLD [36.1K]

Every quarter the company can expect a loss

8 0

3 years ago

Define the term collateral and include two examples​

Define the term collateral and include two examples