- Travel and Entertainment Credit - Consumers use cards with no interest and non-revolving balance.
- Revolving Check Credit - Consumers use prearranged loan using special checks.
- Closed-End Credit - Consumers pay off dept and credit is automatically renewed.
- Revolving Credit - Consumers take out a loan with a repayment date and have a specific purpose.
<h3>What is meant by Consumer Credit?</h3>
Consumer credit refers to debt incurred by an individual to pay for products and services. An example of consumer credit is a credit card.
Consumer credit might refer to any sort of personal loan, although it is more frequently used to denote unsecured debt that is incurred to pay for regular products and services. Consumer debt can, however, also refer to secured loans like mortgages and auto loans.
Installment credit is given for a predetermined time period and is utilized for a specified purpose.
Open-ended revolving credit is a type of loan that can be applied to any kind of transaction.
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Answer:
a. net income= understated, retained earnings= understated
Explanation:
In accounting and auditing it is established that ending inventory and net income moves in the same direction when it comes to being overstated or understated. That implies that if <u>ending inventory is understated</u>, then cost of goods sold will be overstated by the same amount, and when costs are overstated it finally leads to <u>net income and gross profit being understated.</u>
Furthermore, since it is the net income that will be added to retained earnings thereafter, it implies that the lesser the net income the lesser will be retained earnings. Hence, understatement of ending inventory is understatement of net income and also retained earnings.
Answer:
$5,000
Explanation:
According to the Internal Revenue Service, the amount of deduction for startup costs would be limited to $5,000 if the startup costs are $50,000 or less
However, if the start-up costs were more than $50,000, the deduction would be decreased by the dollar amount.
Since in the given scenario, the $18,000 is the startup cost so she is eligible for the deduction of $5,000
Answer:
Amount per month (A) = $200 + $0.50 x $200 = $300
Interest rate (r) = 8.25% = 0.0825
Number of years (n) = 30 years
No of compounding periods in a year (m) = 12
Future value = ?
FV = A(1 + r/m)nm - 1)
r/m
FV = $300(1 + 0.0825/12)30x12 - 1)
0.0825/12
FV = $300(1 + 0.006875)360 - 1)
0.006875
FV = $300(1.006875)360 - 1)
0.006875
FV = $300 x 1,568.218999
FV = $470,465.70
The correct answer is D
Explanation:
In this case, there is need to apply the formula for future value of an ordinary annuity on the ground that compounding is done monthly. In the formula, monthly deposit (A) is $300, number of years is 30 years and interest rate (r) is divided by 12 because compounding is done on monthly basis. The number of years is also multiplied by the number of times interest is compounded in a year.
