All categories

2 years ago

Which two of the four cs of credit have to do with earning potential and available cash?

Business

1 answer:

Natali5045456 [20]2 years ago

7 0

The four 'Cs' of credit are : Character, Capacity or Cashflow, Capital and Conditions.

Out of the 4 'Cs' of credit, the two 'Cs' that deal with the earning potential and available cash are 'Capacity' and 'Capital'.

Capacity: It is the assessment the of the ability of any business to pay bills and maintain the cash flow. It contains in it the debt structure of the firm and the unused credit.

Capital: It is the assessment, if a company has the ability to pay back its creditors by the help of its financial resources or available cash.

You might be interested in

On June 30, 2010, Microsoft Corporation was holding $4.8 billion of cash that it had collected from customers in advance for fut

iVinArrow [24]

Answer: O the liability Unearned Revenue on its balance sheet.

Explanation:

Unearned Revenue is a liability that goes into the balance sheet to record the cash received for goods and/or services that the company have not delivered yet.

This is so that the company is not in violation of the Accrual Accounting concept known as the Revenue Recognition Principle that states that revenue should be recognised only in the period that they have been earned.

Microsoft in this scenario will record this cash as an Unearned Revenue and then consider it revenue when it has delivered the said goods and services.

7 0

1 year ago

A professional gambler moves from a state where gambling is illegal to a state where gam-bling is legal. Most of his income was,

Murrr4er [49]

Answer:

The answer is: A) raises GDP.

Explanation:

If a gambler is a professional gambler (pays income tax on his gambling earnings) then when he moves from a state that prohibits gambling to a state that allows gambling, his earnings will increase the GDP.

The GDP only considers legal income, so illegal activities such as prostitution, drug trafficking, or illegal gambling are not included in the GDP. But if they become legal (e.g. some states legalized marijuana) then they should be included in the GDP.

4 0

1 year ago

A firm employs 100 workers at a wage rate of $10 per hour, and 50 units of capital at a rate of $21 per hour. The marginal produ

algol13

Answer:

The correct option is "B"

Explanation:

Worker = 100 × $10

Worker = 1000

Capital = 50 × $21

Capital = 1050

As the expense of work is not exactly capital, along these lines utilizing more work and less capital. In addition the minor profitability of work is additionally more than the capital

5 0

1 year ago

Read 2 more answers

As a long-term investment at the beginning of the 2021 fiscal year, Florists International purchased 30% of Nursery Supplies Inc

Natalka [10]

Answer:

a. How would this investment be classified on Florists' balance sheet?

Florists International must use the equity method since it exercises significant influence over Nursery Supplies. This investment must be reported under non-current assets as Investment in Nursery Supplies.

Dr Investment in Nursery Supplies 60,000,000

Cr Cash 60,000,000

Dr Cash 12,000,000

Cr Investment in Nursery Supplies 12,000,000

Dr Investment in Nursery Supplies 21,000,000

Cr investment revenue 21,000,000

b. Prepare all appropriate journal entries related to the investment during 2021, under the fair value option, and in a manner similar to what Florists would use for investments in equity securities for which it does not have significant influence.

Dr Investment in Nursery Supplies 60,000,000

Cr Cash 60,000,000

Dr Cash 12,000,000

Cr Dividend revenue 12,000,000

Dr Loss on held for trading securities 4,000,000

Cr Investment in Nursery Supplies 4,000,000

3 0

1 year ago

Normander Corp. is a large media corporation that owns all the media outlets in Liecheben and a few news agencies internationall

White raven [17]

Answer:

The correct answer is letter "B": monopoly.

Explanation:

A monopoly exists when one business is the sole or almost sole supplier of a good or service within a market. This potentially allows the business to become dominant enough to prohibit rivals from entering the marketplace resulting in minimal consumer choice, higher prices, and reduced response to customer requests.

7 0

1 year ago