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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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Last year, Myron purchased a $10,000 certificate of deposit with a 3% rate of interest from his bank. The government reported th

Reil [10]

Answer:

Option C is the right answer

Explanation:

In this question, we are asked to state what happens in a transaction given some level of information.

Firstly, we need to understand what a certificate of deposit is. A certificate of deposit referred to as CD is a kind of bank product that stipulates that a customer has agreed to leave a certain amount of money in the bank for a particular period of time untouched at an interest rate higher than normal and otherwise tagged as premium.

Now, it must be stated that it was after he was issued that there was a drop in prices. Whatever happens during the drop will not affect him and would be the bank’s concerns simply because his own rate had been predetermined and nothing could change this as he had been issued a contract to that affect.

A drop in price will thus make his initial deposits higher now since there is a drop in price will generally, the bank will bear the brunt of the drop in price hence, losing

6 0

4 years ago

A department store sells refrigerators from four manufacturers: 40% from Company A, 25% from Company B, 15% from Company C, and

Rufina [12.5K]

Answer:

A: 0.1475 , B: 0.3389

Explanation:

a. Probability Refrigerator purchased from store lasts more than 15 years :

Prob(refrigerator purchase from A) and Prob(refrigerator from A life > 15 years) + .........Prob(refrigerator purchase from D) and Prob(refrigerator from D life >15 years)

(0.40x0.1)+(0.25x0.20)+(0.15x0.05)+(0.20x0.25) = 0.04+0.05+0.0075+0.05 = 0.1475

b. Refrigerator last > 15 years given , Probability it is from B :

[ Prob (B Purchase) . Prob (life > 15, given from B) ] / Prob (Life > 15)

P (B/15) = [P(B).P(15/B)] / [P15] {Bayes Theorum}

= [(0.25)(0.20)] / 0.1475 = 0.05 / 0.1475

= 0.3389

5 0

3 years ago

There are 4 households in a locality. The annual income of the first household $20,000, the annual income of the second househol

mihalych1998 [28]

Answer:

b) The progressive income tax system

Explanation:

The tax is compulsory contribution levied by the authority in a territory on goods, services, income and profit.

Proportional income tax :Income tax is said to be proportional where the same tax rate is paid by all irrespective of their income bracket.

A progressive income tax is that where the tax rate becomes higher for those income earners in the high income bracket. The tax rates on every dollar earned becomes higher with increase in income.

The regressive income tax is where a lower percentage is paid as tax as the income income increases. Lower rate is paid on additional dollar earned.

The scenario in the question falls under the concept of progressive income tax system

6 0

3 years ago

Read 2 more answers

Assume the following for a company whose sales are all on account: The total asset turnover is 1.8. The average total assets is

Sauron [17]

The average accounts receivable balance is closest to $120,000.

<h3>What is the average accounts receivable balance?</h3>

The average accounts receivable balance is the addition of beginning and ending accounts receivable divided by two.

For instance, if the average accounts receivable balance is $120,000, then the total accounts receivable is $240,000 ($120,000 x 2).

<h3>Data and Calculations:</h3>

Assets turnover = 1.8

= (Net sales/Average Total Assets)

Average total assets = $600,000

Accounts receivable turnover = 9.00

= (Net Sales/Average Accounts Receivable)

Net sales = $1,080,000 ($600,000 x 1.8)

Average Accounts Receivable = $120,000 ($1,080,000/9)

Thus, the average accounts receivable balance is closest to $120,000.

Learn more about average accounts receivable at brainly.com/question/23821865

7 0

2 years ago

Terangkan peran sistem pembayaran dalam perekonomian!

Maslowich

Sistem pembayaran nessacary karena tanpa surrency , kita hanya akan memiliki barter , metode yang agak inneffiecient perdagangan .

5 0

4 years ago