The process of determining the probability that potential customers will not pay is called <u>"credit analysis".</u>
Credit analysis is a sort of analysis an investor or bond portfolio chief performs on organizations or other obligation issuing substances to gauge the element's capacity to meet its obligation commitments. The credit investigation looks to recognize the suitable dimension of default chance related with putting resources into that specific substance.
The result of the credit analysis will figure out what hazard rating to appoint the obligation guarantor or borrower. The hazard rating, thus, decides if to stretch out credit or advance cash to the obtaining substance and provided that this is true, the sum to loan.
Answer: <em>$4. 71 hamburger and $6.29 French fries.
</em>
Explanation:
Total spendable income of Antonio = $11.00
1 hamburger = $1.50
1 order of French fries = $1.00
Utility maximization function: U(x1, x2) = x1x2 i.e. 1 hamburger and 2 orders of French fries
Using the Utility maximization function: U(x1, x2) = $1.50 + $2.00
= $3.50 per lunch
Therefore the customer will purchase hamburger worth of $(1.50 x 11.00/3.50) = $4. 71
And French fries orders worth of $(2.00 x 11.00/3.50) = $6.29
<em>Antonio will maximize his satisfaction by purchasing $4. 71 hamburger and $6.29 French fries.
</em>
Answer:
true
Explanation:
The equivalent units of production in respect of direct labor for the given scenario shall be determined through the following mentioned equation:
Equivalent units of direct labor=Number of physical units at start of the reporting period*Completion percentage with respect to direct labor
Equivalent units of direct labor=100,000*20%
=20,000 units
So based on the above calculation, the statement is true
Answer:
$4,600
Explanation:
The computation of the balance in Oceanic's Warranty Liability account is shown below:
= Sales × estimated percentage - warranty claims
= $300,000 × 5% - $10,400
= $15,000 - $10,400
= $4,600
We simply find out estimated warranty cost and then deduct the warranty claims so that the accurate value can come.
Thus, All the items are need to be considered for the computation part.