Answer:
The interest on notes is calculated as follows
Interest payable = Face value of bonds * Interest rate * (Time of maturity / 12 months)
= $695,000 * 6% * 9/12
=$31,275
Cullumber company will pay the face value of the notes as the notes are payable at par, along with interest rate of 6% for the period of 9 months. This will result in outflow of cash, thereby crediting cash account. The liability on account of notes payable and interest payable will be settles, thereby debiting the payable account
General Entry
Date Account Title and Explanation Debit Credit
30 Sep. Notes payable $695,000
Interest payable $31,275
Cash $726,275
(To record the amount to be paid at maturity)
Answer:
C. It is influenced by changes in price.
Answer:
The correct answer is: The PPF shows us that gains from trade are maximized when countries produce goods for which they have an absolute advantage in production.
Explanation:
A production possibilities frontier is a curve that shows different combinations or bundles of two goods that can be produced using all the resources and technology available.
It represents the concept of scarcity of resources and opportunity costs. Because of the scarcity of resources we cannot increase the production of both goods. To increase the production of one good we need to sacrifice the production of others. So, there is some opportunity cost involved in producing each additional unit of output.
Answer:
C) your willingness and tolerance to bear risk
Explanation:
Long term investment is the act of wealth creation for a future use of money.
investing into long terms involves some patience and risks because, investment like this cannot be for seen, it fluctuate sometimes leading to appreciation or depreciation in the value of money.
this helps in bringing maximum returns for your money over a period of more than 10 years. to better maximize these returns involves a lots of patience, tolerance and risks
