The answer is: B. sacrifice profits for less risk.
Interest rates influence the amount of money that the borrower had to give back to the bank and Higher interest rate would give higher profit for the bank.
When bank people give low interest rates for people with good credit, the number of revenue that bank would make from giving the loan would decrease. But people with good credit has high likelihood of returning the money they borrow, which mean that there is less risk for the bank.
Answer:
D. 189,000 = NA + 189,000 NA - NA = NA 189,000 FA
Explanation:
The accounting equation shows the relationship between the elements of a balance sheet which are assets liabilities and equity. This may be expressed mathematically as
Assets = Liabilities + Equity
While assets include fixed assets, cash, inventories, account receivables etc, liabilities include accounts payable, loans payable, accrued expenses etc.
Equity which represents the amount owed to the owners of the business includes retained earnings (which is the accumulation of the net income/loss over the years less dividends paid) and common shares.
When 9,000 shares of no-par stock issued for $17 per share increases to $21, this means that the additional amount
= ($21 - $17) × 9000
= $36,000
Amount to be collected from the issue
= $21 × 9000
= $189,000
This will result in an increase in cash and an increase in owners equity (the respective debits and credits).
Answer:4
Explanation:The total in 4 months would equal 360
Answer:
D) An acid-test ratio = 1.0 tells us that without adequate inventory turnover, this company may represent a higher risk. Peak Performance's acid-test ratio shows that the firm maintains $1.00 in current assets for every $1.00 in current liabilities.
Explanation:
The acid test ratio is the ratio which depicts the liquidity of the company. It excludes the inventory, prepaid expenses, etc for calculating it
The formula to compute is shown below:
Acid test ratio is
= Quick assets ÷ current liabilities
Therefore according to the given situation, the correct option is d.
Answer:
Option a should be selected
Explanation:
After considering the PV of both options A and B the option that has been selected is A.
For option A:-
A total of the present value of option A= -25000-925.926-857.339-793.832 = -27577.097
Present value = 27577
For option B,:-
Total = -20,000-3703.704-2572.017-1587.664
= -27863.385
The present value of option B = 27863
From the calculations I have attached, it is evident that option A has lower present value compared to option B. Therefore option A should be selected.
