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2 years ago

"principle a sum of money lent or invested on which interest is paid. a interest is money paid regularly at a particular rate"

2 answers:

eduard2 years ago

4 0

That statement is true
For example if you lend $ 100,000 to your friend with 10% interest rate per year,
The initial $ 100,000 is the one that you consider as principle.
Meanwhile the amount of money that considered as interest is $100,000 x 10% = $ 10,000 per year.

BlackZzzverrR [31]2 years ago

3 0

The statement above is correct. The principle or principal amount is the money that one borrows or invests. Both are subject to interest. The interest earned will depend on the terms you agreed to with your bank or financial institution.

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You have a client whose business uses accrual-basis invoicing and accounts receivable workflow. They use the Banking screen to e

PIT_PIT [208]

Answer: Their Accounts Receivable balance will not be accurate.

The income account will show duplicate income.

Explanation:

Based on the information given in the question, the problem that this will cause is that there'll be an incorrect balance that is shown in the balance of the accounts receivable.

Also, there'll be a duplicate income entry that is created in the income account.

3 0

2 years ago

A car dealer who sells only late-model luxury cars recently hired a new salesman and believes that this salesman is selling at l

Natasha2012 [34]

Answer:

$t=\frac{5000-5600}{\frac{800}{\sqrt{16}}}=-3$

Explanation:

Data given and notation

$\bar X=5000$ represent the sample mean

$s=800$ represent the standard deviation for the sample

$n=16$ sample size

$\mu_o =5600$ represent the value that we want to test

$\alpha$ represent the significance level for the hypothesis test.

t would represent the statistic (variable of interest)

$p_v$ represent the p value for the test (variable of interest)

State the null and alternative hypotheses.

We need to conduct a hypothesis in order to determine if the mean is lower than 5600, the system of hypothesis would be:

Null hypothesis: $\mu \geq 5600$

Alternative hypothesis: $\mu < 5600$

We don't know the population deviation, so for this case is better apply a t test to compare the actual mean to the reference value, and the statistic is given by:

$t=\frac{\bar X-\mu_o}{\frac{s}{\sqrt{n}}}$ (1)

t-test: "Is used to compare group means. Is one of the most common tests and is used to determine if the mean is (higher, less or not equal) to an specified value".

Calculate the statistic

We can replace in formula (1) the info given like this:

$t=\frac{5000-5600}{\frac{800}{\sqrt{16}}}=-3$

4 0

2 years ago

The manager of a canned-food processing plant has two labeling machine options. On the basis of a rate of return analysis with a

GREYUIT [131]

The manager of a canned-food processing plant has two labeling machine options. on the basis of a rate of return analysis with a marr of 20% per year, determine (a) which model is economically better, and (b) if the selection changes, provided both options have a 4-year life and all other estimates remain the same.

Answer:

The answer is below

Explanation:

First, compare the present values (PV) of all the expenses of all the investments to make an investment decision.

Given the formula of PV = ((C1/(1+r)1) + ((C2/(1+r)2) + ((C3/(1+r)3) +…….+ ((Cn/(1+r)n) + present value of investment – present value of the salvage value

Where, Cn equals to the expense incurred in the nth period and r is the rate of interest per period.

Therefore, for Machine A, present value of the expenses is

= ((1600/(1+0.20)1) + ((1600/(1+0.20)2) + 15,000 – ((3000/(1+0.20)2)

= 1333.33 + 1111.11 + 15000 – 2083.33

= 15361.11

For Machine B, present value of the expenses is

= ((400/(1+0.20)1) + ((400/(1+0.20)2) + ((400/(1+0.20)3) + ((400/(1+0.20)4) + 25,000 - ((4000/(1+0.20)2)

= 333.33 + 277.77 + 25,000 – 2777.77

= 22833.33

Therefore, it is shown that, Machine A is the least cost alternative and should be selected.

5 0

2 years ago

. Suppose you own a bookstore. You believe that you can sell 40 copies per day of the latest John Grisham novel when the price i

Iteru [2.4K]

Answer:

PED = 0.67 inelastic demand

you should not lower the price of the book

Explanation:

the midpoint formula for calculating price elasticity of demand = {(Q2 - Q1) / [(Q2 + Q1) / 2]} / {(P2 - P1) / [(P2 + P1) / 2]}

PED = {(50 - 40) / [(50 + 40) / 2]} / {(25 - 35) / [(25 + 35) / 2]} = [10 / (90 / 2)] / [-10 / (60 / 2)] = (10 / 45) / (-10 / 30) = 0.222 / -0.333 = 0.67

the PED = 0.67 which means that the demand is inelastic

if you lower the price of the book, the increase in number of books sold will be proportionally lower than decrease in price, so you will lose money by doing that.

7 0

2 years ago

On November 10 of the current year, Cherokee Industries sold materials to a customer for $8,000 with credit terms 2/10, n/30. Ch

irga5000 [103]

Answer:

C.Accounts receivable 7,840 Cash discounts 160 Sales 8,000

Explanation:

I think your question is missed of key information, allow me to add in and hope it will fit the original one.

a. Accounts receivable 8,000 Sales 8,000

b. Accounts receivable 7,840 Sales 7,840

c. Accounts receivable 7,840 Cash discounts 160 Sales 8,000

d. Accounts receivable 8,000 Cash discounts 160 Sales 7,840

My answer:

Given:

Materials sold = $8,000

Credit terms = 2/10, n/30

Journal Entry for record sale on 10th November

Date Account Debit Credit

Nov 10 Cash $8000

Account receivable $7840

(8000 × 98%)

Sales discount $160

So Accounts receivable 7,840 Cash discounts 160 Sales 8,000 we choose C

6 0

2 years ago

Read 2 more answers