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salantis [7]
2 years ago
10

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

Business
2 answers:
Ede4ka [16]2 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]2 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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In spring of this year, Parmac Engineering Company signed a $480 million contract with the city of Parkersburg, to construct a n
elena-s [515]

Answer:

$192,000 million

Explanation:

Calculation for how much revenue should Parmac recognize in the current year

First step is to find the percentage of completion using this formula

Percentage of completion=Cost incurred/Total expected cost

Let plug in the formula

Percentage of completion=$144 million/$360 million

Percentage of completion=0.4*100

Percentage of completion=40%

Last step is to find the revenue recognized using this formula

Revenue recognized=Total contract *Percentage of completion

Let plug in the formula

Revenue recognized=$480 million*40%

Revenue recognized=$192,000 million

Therefore the amount of revenue that Parmac should recognize in the current year will be $192,000 million

3 0
3 years ago
A food truck operator originally produced hamburgers and hotdogs. To serve the tastes of their various customers, the hot dog ve
tensa zangetsu [6.8K]

Answer:

The correct answer is (b) Dis-economies of scope

Explanation:

Solution

Dis-economics of scope : This refers to a situation when the average cost of production is greater from the shared production of services than the average costs from the preceding  independent production of the services.

The vendor here in this case is experiencing Dis-economics of scope.

5 0
3 years ago
A company manufactures a product using machine cells. Each cell has a design capacity of 250 units perday and an effective capac
lisabon 2012 [21]

Answer:

3 cells

Explanation:

The demand in 2 years is gotten;

= 50000 * 3

= 150,000

Per Day output per cell is 225 units, in 240 workdays, therefore the output is gotten as;

225 * 240 = 54,000

To get the number of Cells;

= 150000/54000= 2.8

Rounded up to the next whole number we have 3 Cells.

7 0
3 years ago
The current price of a 10-year Bond, $1000 par value bond is $1.158,91. Interest on this bond is paid every six months, and the
schepotkina [342]

Answer:

C) 14%

Explanation:

The nominal annual yield is exactly the same as the bond's annual coupon rate. The nominal annual yield is calculated as a fixed percentage of the bond's par value and it doesn't change if the market price of the bond increases or decreases.

The bond's current yield is the actual interest rate that the bond is paying since its calculation is based on the bond's market price, not its par value.

4 0
3 years ago
Which one of the following statements is correct? A) Cash management primarily involves determining the optimal level of liquidi
Anastasy [175]

Answer:  B) The longer the cash cycle, the more likely a company will need external financing.

Explanation:

The cash cycle refers to the amount of time it would take a company to be able to convert the goods that it has in inventory to actual cash. If this cycle is long, then the company will have less cash than it needs because it is not raising cash fast enough.

To be able to fund operations therefore, the company might be forced to seek external financing.

3 0
3 years ago
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