Require the issuer to set aside assets to pay bonds at maturity.
Bonds that require the issuer to set aside a pool of assets used only to repay the bonds at maturity.
<h3>What is Sinking Fund Bond ?</h3>
A sinking fund is maintained by companies for bond issues, and is money set aside or saved to pay off a debt or bond.
- Bonds issued with sinking funds are lower risk since they are backed by the collateral in the fund, and therefore carry lower yields.
- example may be a company issuing $1 million of bonds that are to mature in 10 years. Given this, it creates a sinking fund and deposits $100,000 yearly to make sure that the bonds are all bought back by their maturity date
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Answer:
a. Source documents provide control and reliability in an accounting information system.
Explanation:
The source documents are the documents that support all types of business transaction. It can be in terms of bank statement, purchase order, sales order, supplier invoices, etc. It can also known as vouchers
With the help of the source documents the accounting system provides the reliable and controlling of transactions
This is the first step to verify the transactions after that recording, posting of transactions could be done.
A computer would enhance the productivity of a business because it would produce better communication and would also help things be accomplished faster. hope that helps if not lmk
Answer:
Here the variable cost can be computed using the following formula:
Variable cost = (Sales commissions + Shipping expense + Miscellaneous selling expenses) ×Sales
Variable cost = (4% + 1% + 3/4%) x $500,000 = $28,750
Fixed cost = Sales manager's salary + Advertising expense + Miscellaneous selling expenses
= $30,000 + $25,000 + $2,100
= $57,100
<em>Total selling expense budget = Variable cost + Fixed cost</em>
<em>= $28,750 + $57,100 </em>
<em>= $85,850</em>
