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3 years ago

What is the price paid for the use of borrowed money referred to as?

1 answer:

3 0

Interest
Interest is the monetary charge for borrowing money—generally expressed as a percentage, such as an annual percentage rate (APR). Key factors affecting interest rates include inflation rate, length of time the money is borrowed, liquidity, and risk of default. Interest can also express ownership in a company.

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The ABC Corporation makes collections on sales according to the following schedule: 25% in month of sale 71% in month following

Sedbober [7]

Answer:

Budgeted cash collection in June=$110,300

Explanation:

Budgeted cash collection in June will be determined as follows:

Month of sale collection

= 25%×June sales = 25%× 100,000= 25,000

Month following sales collection

71%× May sales= 71% × 110,000 = 78,100

Second month following sales collection

4%× April Sales = 4%× 180,000= 7200

Budgeted cash collection in June= 25,000 + 78,100 + 7200 =110,300

Budgeted cash collection in June=$110,300

6 0

3 years ago

Farmers Produce Inc. and Growers Market enter into a contract for the delivery of vegetables. Some of the produce spoils before

Tamiku [17]

Answer:

A. Not fully integrated.

4 0

3 years ago

Lowering the interest rate will:A. decrease spending on new homes. B. decrease spending on consumer durables. C. decrease the va

ahrayia [7]

Answer:

D: increase investment projects by firms

Explanation:

When interest rates are lowered, it is a green signal for small and medium size enterprises to borrow money for their investment projects.

3 0

3 years ago

ABC Company leased equipment to Best Corporation under a lease agreement that qualifies as a finance lease. The cost of the asse

alexandr402 [8]

$12120 is the annual amortization expense

Explanation:

The following formula is used to calculate the annual depreciation expense that will be recorded in the books of accounts

Depreciation = ( cost of the asset minus salvage value) divide by number of years.

Given data in the question: number of years = 10, cost of the asset = $124000, salvage value = $28000

Putting the figures in the formula,

Depreciation expense = ($124000 minus $28000) divide by 10

After solving, we get = $12120

Thus, annual depreciation expense = $12120

7 0

3 years ago

First Class, Inc., expects to sell 22,000 pool cues for $12.00 each. Direct materials costs are $4.00, direct manufacturing la

MatroZZZ [7]

Answer:

budgeted costs for direct materials

$88,000

budgeted direct manufacturing labor

$132,000

budgeted manufacturing overhead

$18,480

Explanation:

Direct materials costs are $4.00 per pool cue.

Direct manufacturing labor is $6.00 per pool cue.

Manufacturing overhead is $0.84 per pool cue.

total budgeted direct materials = 22,000 x $4 = $88,000

total budgeted direct labor = 22,000 x $6 = $132,000

total budgeted manufacturing overhead = 22,000 x $0.84 = $18,480

The information about the beginning and ending inventories is not relevant to this question since it only deals with budgeted or estimated costs which may or may not differ from actual costs.

3 0

3 years ago