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3 years ago

- What is the conventional wisdom when it comes to what good debt is vs. bad debt?

Business

2 answers:

Ede4ka [16]3 years ago

6 0

good debt is for buying assets : things that will be worth more in the future

bad debt is for buying liabilities : things that will be worth less in the future

Ksenya-84 [330]3 years ago

4 0

Answer:

Good debt has the potential to increase your net worth or enhance your life in an important way. Bad debt involves borrowing money to purchase rapidly depreciating assets or only for the purpose of consumption.

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If something happens to alter the quantity supplied at any given price, then.

morpeh [17]

Change in quantity supply will lead to a shift in supply curve.

<h3>What is change in supply?</h3>

Change in supply lead to a shift in the supply curve either to the left or right.

This occur in the price to quantity relationship which defines a supply curve.

This change often makes the supply curve becomes steeper and flatter.

Therefore, Change in quantity supply will lead to a shift in supply curve either to right or left.

Learn more on supply curve here,

brainly.com/question/1456933

3 0

2 years ago

On March 31, 2021, Canseco Plumbing Fixtures purchased equipment for $56,000. Residual value at the end of an estimated four-yea

77julia77 [94]

Answer:

Instructions are below.

Explanation:

Giving the following information:

Purchasing price= $56,000

Residual value= $2,000

Estimated useful life= 4 years

A. To calculate the depreciation expense under the straight-line method, we need to use the following formula:

Annual depreciation= (original cost - salvage value)/estimated life (years)

Annual depreciation= (56,000 - 2,000)/4

Annual depreciation= 13,500

2021= (13,500/12)*= $10,125

2022= 13,500

B. To calculate the depreciation expense under the double-declining balance method, we need to use the following formula:

Annual depreciation= 2*[(book value)/estimated life (years)]

2021= [(2*13,500)/12]*9= $20,250

2022= [(54,000 - 20,250)/4]*2= $16,875

C. To calculate the depreciation expense under the units of production method, we need to use the following formula:

Annual depreciation= [(original cost - salvage value)/useful life of production in hours]*hours operated

The company expects the equipment to operate for 15,000 hours. The equipment operated for 3,500 and 4,300 hours in 2021 and 2022, respectively.

2021= (54,000/15,000)*3,500= $12,600

2022= 3.6*4,300= $15,480

3 0

3 years ago

Which account would be most likely to have an account balance that is not normal?

kakasveta [241]

Answer:

The "normal" status of an account is due to the implicitly of the formula:

<em>assets = liabilities + equity.</em>

The allowance for doubtful accounts is a contra account to accounts receivable,
Accumulated depreciation is a reduction of fixed assets,
And dividends are a reduction of equity

The accounts above are called "contra asset" accounts meaning that: is a negative asset account that offsets the asset account with which it is paired.

5 0

3 years ago

June:

Pachacha [2.7K]

Answer:

James Co. (Borrower)

June 1

Debit Merchandise Inventory $90,000

Credit Accounts Payable $90,000

June 30

Debit Accounts Payable $90,000

Credit Notes Payable $90,000

August 29

Debit Notes Payable $90,000

Debit Interest on Notes $750

Credit Cash Account $90,750

O’Leary Co. (Creditor)

June 1

Dr Accounts Receivable $90,000

Cr Sales $90,000

Dr Notes Receivable $90,000

Cr Accounts Receivable $90,000

Aug. 29

Dr Cash $90,750

Cr Notes Receivable $90,000

Cr Interest Revenue $750

Explanation:

Preparation of the journal entries

James Co. (Borrower)

June 1

Debit Merchandise Inventory $90,000

Credit Accounts Payable $90,000

(To record the purchase of merchandise on account)

June 30

Debit Accounts Payable $90,000

Credit Notes Payable $90,000

(To record the issue of a 60-day, 5% note)

August 29

Debit Notes Payable $90,000

Debit Interest on Notes $750

($90,000 * 5% * 60/360)

Credit Cash Account $90,750

($90,000+$750)

(To record the payment of the notes plus interest)

O’Leary Co. (Creditor)

June 1

Dr Accounts Receivable $90,000

Cr Sales $90,000

Dr Notes Receivable $90,000

Cr Accounts Receivable $90,000

Aug. 29

Dr Cash $90,750

($90,000+$750)

Cr Notes Receivable $90,000

Cr Interest Revenue $750

($90,000 * 5% * 60/360)

6 0

3 years ago

Concerned about the political fallout from rising gasoline prices, the government cuts the tax on gasoline. At the same time,

Kitty [74]

Answer: 1) increases and 2) increases

Explanation:

When a government cuts tax on gasoline then it will become cheaper for the consumer as well as for the suppliers of gasoline. So, they increase the supply of gasoline because of the tax cut by the government.

Also, if the oil producing companies decided to increase the production at the same time then this will also increase the supply of gasoline.

Hence, both tax cut by the government and increase in oil production results in higher supply of gasoline.

7 0

3 years ago