Answer:
$2,225
Explanation:
For computing the interest expense, we need to do the following calculations which are shown below:
Cash interest = Face value × rate of interest × number of months ÷ total number of months in a year
= $185,000 × 6% × 3 months ÷ 12 months
= $2,775
Now
Premium Amortization is
= Premium amount ÷ number of year × number of months ÷ total number of months in a year
= $11,000 ÷ 5 years × 3 months ÷ 12 months
= $550
The $11,000 is come from
= $196,000 - $185,000
So,
Interest expense is
= Cash Interest - premium amortization
= $2,775 - $550
= $2,225
Answer:
c. Revenue is increased.
Explanation:
Cash Received in advance from customer for future services will be a liability it will increase the assets as increase in cash, increase the liability as unearned revenue and increase in cash flow from operating activities as cash received from as customer. So c. Revenue is increased. does not correctly reflect the transaction.
Answer:
The correct answer is D. does not increase the amount of the product that consumers buy because it creates a shortage.
Explanation:
If a market is defined by the following demand and supply functions. The balance or price that reflects the coincidence in valuation of the good of consumers and producers, would occur at the intersection between both functions.
When the State intends to supplant market activity in the allocation of goods and services, it can do so through a policy of maximum and minimum prices.
If it is considered appropriate that a given price is less accessible than what would take place in the market, it will establish a maximum price, above which no company can sell. When this occurs, we can graphically appreciate how at that price the quantity demanded is greater than that offered, thus generating an excess of demand that leads to the shortage of the good. In this context, some mechanism will be developed that allows rationing the offer (long lines, different criteria such as age, economic level, etc.) This being, land paid for the appearance of the “black market”.
Another type of price control is the establishment of a minimum price. This system has been used frequently in agricultural markets, when the State has sought to prevent farmers' income from drastically reducing.
When a minimum price is established higher than what would take place in the market, the quantity offered exceeds the defendant, thus producing an excess supply. This excess supply will lead to an accumulation of production that will generate great inefficiency.
The correct answer is C. Functional decomposition
Answer:
Medical information of the application includes information on the prospective insured's medical background, present health, any medical visits in recent years, medical status of living relatives, and causes of death of deceased relatives.
