The manager ought to make more donuts in light of the information presented.
What word best defines an output whose average total cost is the lowest possible?When the average cost of production rises above a particular level of output, the opposite phenomenon—diseconomies of scale—occurs. The minimal efficient scale (MES) of output for a company or factory is reached when the average costs are at their lowest level.
What is marginal cost, exactly?When we talk about marginal cost, we're talking about the rise in production costs brought on by the creation of more product units. The marginal cost of manufacturing is another name for it. Businesses may evaluate how cost and earnings are influenced by volume output by calculating the marginal cost.
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name the method of determining what sales volume must be reached before total revenue equals total costs.
The method of determining what sales volume must be reached before total revenue equals total costs is Break-even Analysis.
A break-even study evaluates the costs of a new business, service, or product against the unit sale price to establish when you will be financially independent. It represents the time when all of your expenses will be covered by your revenue. You won't have earned or lost any money by that time.
A financial method called "break-even analysis" can be used to determine a company's break-even point (BEP). It is an internal management tool as opposed to a computation that is frequently published to other parties like regulators or investors. However, if you seek for a loan, banks might want you to incorporate it in your financial projections.
Traditional advertising will continue to decline, albeit gradually.
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putting a bold disclaimer at the front of the handbook that says it is not a contract and requiring employees to sign the disclaimer is an attempt by businesses to:
Putting a bold disclaimer at the front of the handbook that says it is not a contract and requiring employees to sign the disclaimer is an attempt by businesses to protect themselves from being found to create an implied contract.
The implied contract refers to a legal obligation occurring due to the action, behavior, or situation of the parties involved in that contract. It is considered legal just like any other contract created legally and voluntarily between the parties.
The implied contract does not require any verbal or written confirmation between the parties involved in it. In some circumstances, it is difficult to enforce an implied contract due to a lack of evidence.
The underlying principles in an implied contract are based on fair play, where no party gets an undue advantage or benefit at the loss of the other party.
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Which of the following is a standard that defines how accountants record
financial transactions?
O A. generally accepted accounting principles
OB. government allowed accounting practices
OC. government applied accounting practices
O D. general accounting and auditing procedures
Generally accepted accounting principles.
What is a financial transaction?
An agreement or communication between a buyer and a seller to trade products, services, or assets in exchange for money is a financial transaction.
A unified set of accounting guidelines, methods, and standards known as generally accepted accounting principles (GAAP) were released by the Financial Accounting Standards Board (FASB). When their accountants put together a public company's financial statements, they must adhere to GAAP in the United States.
Ten basic principles serve as the framework for GAAP, which is a set of regulations. The International Financial Reporting Standards (IFRS), which are seen as more of a principles-based norm, are frequently used as a comparison. There have recently been initiatives to move GAAP reporting to IFRS because it is a more global standard.
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the management of an indoor shopping mall wants to survey its shoppers about the layout of the stores in the mall. raffle tickets are handed out at each entrance. ninety-six of the raffle tickets were randomly selected ahead of time and marked. customers who receive the marked tickets are to be surveyed. this scenario describes?
The given scenario describes 'simple random sampling'.
Simple random sampling refers to a type of probability sampling whereby the researcher randomly chooses a subset of participants from a statistical population.
As per the scenario provided in the given statement where the management of an indoor shopping mall conducts a survey of its shoppers about the layout of the stores in the mall. Raffle tickets are handed out at each entrance of the mall. Ninety-six (96) of the raffle tickets were randomly selected and marked ahead of time. The customers who got the marked tickets are to be surveyed. This scenario is an example of 'simple random sampling'.
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A certain type of notebook costs $2. 50 before sales tax is added. When you buy 9 of these notebooks, you receive 1 additional notebook free. What is the average cost per notebook for the 10 notebooks before sales tax is added?.
A certain type of notebook costs $2. 50 before sales tax is added. When you buy 9 of these notebooks, you receive 1 additional notebook free. $2.25 is the average cost per notebook for the 10 notebooks before sales tax is added.
A sales tax is a tax paid to a governing body on the sale of certain goods and services. Laws generally allow sellers to collect taxes from consumers at the time of purchase. When consumers pay taxes on goods and services directly to government agencies, they are usually called consumption taxes.
Sales tax is levied on the purchase of goods and services to consumers and on the sale of goods and services to businesses. This is a type of excise tax. H. It taxes people when they spend money. Taxes imposed by states and local governments on various goods and services are called sales taxes. Examples of goods and services subject to sales tax include retail goods such as groceries and clothing and general services such as dry cleaning and beauty salons.Learn more about sales tax here: https://brainly.com/question/9437038
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you have a market position which allows you to profit when market prices increase but causes you a loss when market prices decline. this position is defined by which one of the following terms?
You have a market position long position allows you to profit when market prices increase but causes you a loss when market prices decline.
Market Price Decline is the difference between the closing price of SIMSCI's stock on the Purchase Date and the value per share of SIMSCI's common stock in the Nasdaq National Market, after taking into account stock position, dividends, and other factors. The Fed has proposed a series of aggressive interest rate hikes in recent months, which is why stocks are declining. The goal of the policy strategy is to reduce price increases by slowing the economy and stifling demand.
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What is at stake if an insurance company’s models aren’t particularly good at predicting risk?.
Insurance companies and data brokers anticipate your medical expenses based on publicly available information on things like race and marital status without any oversight.
How can insurance firms forecast their claim losses with sufficient accuracy to be able to profitably price their policies?
The companies estimate the amount and frequency of any future claims they might be required to pay to policyholders using the law of large numbers in order to make these precise projections. The probability theory, in particular, is a branch of statistics that gives rise to the law of big numbers. Based on established risk factors, such as the policyholder's age, general health condition, occupation, and lifestyle, an insurance firm offers insurance coverage. Adverse selection and moral hazard are two issues that prevented the insurance market from operating effectively. Because a high-risk individual is more likely to apply for insurance than a low-risk person does, adverse selection happens.
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A special type of goal that acts as a stepping stone for other goals is called
an inner-term goal
a mid-term goal
a part-term goal
a short-term goal
A special type of goal that acts as a stepping stone for other goals is called short-term goal
A unique kind of shorter-term goal is an enabling goal. It is composed in order to advance a longer-term objective. Enabling goals serve as stepping stones that allow us to track our development toward longer-term objectives.
Even while short-term objectives aren't always easy to achieve, they're nevertheless crucial steps in the right direction. It is preferable to further divide them into weekly or monthly stepping stone goals when organizing these. This will lay the groundwork for achieving your goals.
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Answer: short-term goal
Explanation: I hope this helps you
images from the great depression included lines of people standing at their financial institution waiting to withdraw their money because they didn't trust the money would be there when they needed it. what was this an example of?
In all, 9,000 banks failed--taking with them $7 billion in depositors' assets. And in the 1930s there was no such thing as deposit insurance--this was a New Deal reform.
An asset is any aid owned or managed by a commercial enterprise or a monetary entity. it's miles something (tangible or intangible) that can be used to provide tremendous financial value. assets represent the value of ownership that may be transformed into coins (despite the fact that coins themselves are also considered an asset).[1] The balance sheet of a firm records the economic[2] value of the assets owned by that company. It covers money and different valuables belonging to a character or to a business.[1]
Belongings can be grouped into major instructions: tangible assets and intangible belongings. The tangible property comprises various subclasses, which include contemporary belongings and glued property.[3] cutting-edge belongings include cash, inventory, and accounts receivable, while fixed belongings include land, buildings, and gadget.
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When the direct write-off method is used, an entry for bad debt expense is required.
The entry for bad debt expense must debit Bad Debts Expense and credit Accounts Receivable when the direct write-off technique is applied.
When using the direct write-off technique, a bad debt expense item is necessary.When a customer's account is really written off, the bad debt charge is first shown on a company's income statement via the direct write-off technique. This usually happens months after the credit sale was made and is recorded using an entry that credits Accounts Receivable and debits Bad Debts Expense.
Businesses can reconcile these amounts in financial statements by using the direct write off technique of accounting for bad debts. The business records the debt in two accounts in order to use the direct write off method: Bad debts are charged as expenses. Receivables from Customers as a Credit.
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How are cranberries processed to prepare them for shipping and purchasing by a consumer.
They could be packaged in clamshell packaging, plastic bags with holes to let out extra moisture, or other types of packaging. After that, the products need to be put in bigger, stronger boxes so they can support the weight of palletization.
How do cranberries get ready?There are two methods used to harvest cranberries: wet harvest and dry harvest. The majority of cranberries are picked wet when the field is inundated, but a small number are picked dry using a mechanized picker and marketed as fresh fruit.The berries are deposited by the machine in a burlap bag that is attached. A sack is poured onto a metal screen to separate the detritus from the berries after it is full. The berries are then put in crates and brought to the processing facility where rotten and bruised ones are separated out and thrown away.They could be packaged in clamshell packaging, plastic bags with holes to let out extra moisture, or other types of packaging. After that, the products need to be put in bigger, stronger boxes so they can support the weight of palletization.To learn more about weight of palletization refer to:
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why does the inclusion of women on corporate boards improve company performance? all of these answers are correct. women bring different life experiences to discussions. women are more likely to raise multiple stakeholder concerns. alternative courses of action are more realistically considered.
The inclusion of women on corporate boards improve company performance as women alternative courses of action are more realistically considered, Women bring different life experiences to discussions, Women are more likely to raise multiple stakeholder concerns.
More frequently than ever before, women in leadership positions are shifting jobs, and driven young women are prepared to follow suit. If companies want to make genuine, long-lasting progress toward gender equality, they must go above and beyond the bare criteria.
Compared to male executives, women leaders are far more likely to leave their jobs in order to have more flexibility or work for a company that is more committed to the welfare of its people. They are more than 1.5 times as likely to have left a previous role as males at their level, and these traits have only risen in importance for female leaders over the last two years.
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you can be liable for up to dollars if your debit card has been compromised and you wait more than two days after learning about the loss.
Under the federal Electronic Fund Transfer Act, if the debit card is lost, then the owner is liable for just $50 if the case has been reported within 2 days to the bank.
The bank has notified earlier that the liability would be $0 if the report of the loss or theft of the card is done immediately and up to $50 if you notify the bank within two business days after the card goes missing. Debit card is a digital bank card which enables payments and purchases without the use of money in cash and the amount gets deducted directly from the bank account. Many banks have already provided complaint platforms and redressal systems for people whose cards go missing or are broken or damaged. It is important that the user is alert about any false transaction made on the card after it goes missing so as to prevent the fraud.
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What are the three basic decisions firms must make when looking at foreign expansion?.
a multinational company with its headquarters in the u.s. wants to sell its new high-technology product in germany. for the most effective selling, the sales force for this company would probably consist mostly of
For the most effective selling, the sales force for this company would probably consist mostly of American expatriates.
An expatriate is someone who has left their usa of foundation so that it will are living overseas. Expats may additionally leave domestic for work motives and are seeking more money making employment in a one of a kind country.
Expatriates may additionally stay for a while distant places or completely renounce their citizenship of 1 usa in desire of another.
An expatriate is a person who is living out of doors their native usa. In common utilization, the time period frequently refers to educated experts, skilled people, or artists taking positions outside their domestic country, both independently or sent abroad by way of their employers.
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city taxi service purchased a new auto to use as a taxi on january 1, year 1, for $36,000. in addition, city paid sales tax and title fees of $1,200 for the vehicle. the taxi is expected to have a five-year life and a salvage value of $4,000. required using the straight-line method, compute the depreciation expense for year 1 and year 2. assume the auto was sold on january 1, year 3, for $21,000. determine the amount of gain or loss that would be recognized on the asset disposal.
The depreciation expense is $6640. The loss that would be recognized on the sale of asset is $2920.
What is depreciation?The term "depreciation" in accounting refers to two related ideas: first, the actual decline in an asset's fair value over time, such as the value of factory equipment declining annually as used and wears out; and second, the allotment in accounting statements of the asset's original outlay to the periods during which the asset is used. Depreciation is the decrease in asset value and the process of redistributing, or "writing down," the cost of a tangible asset (such equipment), over the period of the asset's useful life. Businesses depreciate long-term assets for accounting and tax purposes.
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what are some examples of successful tech startup founders that did not attend a first-tier university for either undergrad or grad school?
However, there are very successful tech leaders who never attended college, such Bill Gates and Mark Zuckerberg, who founded multibillion-dollar businesses.
What makes a good tech founder?The entrepreneurs who have the most sustained success with their startups will share a few traits in common. Vision, passion, the capacity to form effective teams, the capacity to maintain focus, the desire to ask for what is required, humility, and perseverance are among these qualities.The success of a new enterprise is predicted by startup experience, product knowledge, and industry capabilities.Six Essentials for Every Great Startup Founder
Seeing. Grit and Determination. Great founders need a vision for where they want to take their business. Starting and maintaining a business is frequently a very difficult journey. Coachability. The Ability to Recruit and Inspire. #6 An "Unfair" Advantage.To learn more about good tech founder refer to:
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suppose that us interest rates are 4 percent more than rates in the eu, would you expect the dollar to appreciate or depreciate against the eruro
You anticipate the dollar to strengthen or weaken against the euro if US interest rates were 4% higher than those in the EU. It is anticipated that the dollar will increase by 4%.
In comparison to the currencies of other significant economies, the dollar has been strengthening. The US economy is stronger than the economies of many other nations, and the currency is strong because the Federal Reserve keeps rising interest rates.
The United States dollar has dramatically strengthened as a result of the Federal Reserve raising interest rates to combat excessive inflation. At a time when the American economy has few obvious bright spots, the value of the dollar is rising.
London Fitch Ratings, October 21, 2022 The US dollar has reached historically high levels versus a number of the Fitch20 currencies as a result of the Federal Reserve's aggressive interest rate policy.
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new strategies often entail budget reallocations because . a. revamping the performance of value chain activities can be costly b. the accompanying policy revisions and compensation incentives tend to require different levels of funding than before c. business units important in the prior strategy but having a lesser role in the new strategy may need downsizing, while units and activities that now have a bigger and more critical strategic role may need more people, new equipment, additional facilities, and above-average increases in their operating budgets d. empowering employees to carry out the new strategy elements and shifting to a total quality management type of culture to build skills in competent strategy execution typically require substantial new funding and budget revisions e. adopting best practices and pushing for continuous improvement tends to reduce costs and reduce overall resource requirements
New strategies often entail budget reallocations because business units that played a significant role in the previous strategy but have a smaller role in the new strategy.
So, the correct option is C.
The budget reallocation might need to be downsized, whereas activities and units that now play a bigger and more important strategic role might need to be expanded. In addition to above-average increases in operating budgets, it might also require more personnel, new machinery, more space, and other improvements. Reallocating monies from one account to another or to a new account for a different use or purpose is referred to as "budget reallocation."
Changing the authorized award budget through a budget reallocation request requires the sponsor's prior approval (Prior Approval Matrix). Setting specific, manageable tasks for your team to complete can help you take your company's strategy from paper to execution, which is essential for effective and successful strategy implementation.
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a client has a variable annuity with an assumed interest rate of 4%. the client received a first benefit check of $110. the separate account rate of return between the first and second month was 10%. the client received a second check for $125. what was the actual rate of return of the separate account between the second and third month if the client's third check was also for $125?
4% was the actual rate of return of the separate account between the second and third month if the client's third check was also for $125. A client has a a variable annuity with an assumed interest of 4%.
Regardless of market conditions, an annuity is a financial product that is created and backed by an insurance company and offers guaranteed monthly income payments for the duration of the contract. An annuity can be tailored based on a number of factors, including as how long you anticipate living, the commencement date of your payments, and whether you wish to leave your income stream to a beneficiary after your passing.The fundamental purpose of annuities is to augment more conventional retirement income sources like Social Security and pensions. Tax-deferred growth is one of the common traits. Until you start taking withdrawals or getting recurring payments, you won't have to pay income taxes on the returns from your annuity investments.
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take it all away has a cost of equity of 10.72 percent, a pretax cost of debt of 5.39 percent, and a tax rate of 21 percent. the company's capital structure consists of 74 percent debt on a book value basis, but debt is 34 percent of the company's value on a market value basis. what is the company's wacc? multiple choice 9.50% 11.12% 7.23% 8.52% 8.91%
But debt is 34 percent of the company's value on a market value basis. 8.91% is the company's WACC.
WACC = .62(10.96%) + .38(5.46%)(1 − .40)WACC = 8.91%Market value (OMV) is the price at which an asset trades in a competitive auction environment. Market value is often used interchangeably with open market value, fair value, or fair market value, although these terms are defined differently by different standards and can vary. The market value represents the value of a company according to the stock market. It is the price the asset will take in the market. In the corporate context, market value is the same as market capitalization. This is a calculated amount based on the current market price of the company's stock.
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marcia kostner, cfa, is an advisor to individual investors. to determine each of her clients' risk tolerance objectively, kostner uses a mathematical formula with inputs that include the client's age, family size, insurance coverage, liquidity, income, and net worth. what is the most likely shortcoming of kostner's approach to assessing risk tolerance?
This approach does not consider the investor's attitude toward risk.
An investor is a person who allocates fiscal capital with the anticipation of an unborn return or to gain an advantage.
Through this allocated capital utmost of the time, the investor purchases some species of property. An investor is an existent that puts plutocrats into a reality similar as a business for a fiscal return. The main thing of any investor is to minimize threats and maximize returns. It's in discrepancy with a tipster who's willing to invest in a parlous asset with the expedients of getting an advanced profit. One way investments induce income is by paying investors tips. For illustration, if you have invested in a company by buying shares, the company pays a small proportion of its earnings to its shareholders in return.Learn more about investor here: https://brainly.com/question/25596583
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Taxes were historically prepared on paper by consumers or professionals. now, tax-preparation software programs are in wide use by taxpaying consumers and small businesses. this shows the process of.
Tax software analyzes your financial data using IRS tax rules to locate every deduction and credit you can legally use to lower your tax burden.
What is the best software for tax preparer?ProSeries Professional: The best professional tax preparation program overall.QuickBooks Online ProAdvisors should use ProConnect Tax Online.TaxAct Professional: The most affordable option for preparing limitless returns.Drake Tax: The most affordable option for preparing 30 or fewer individual and business tax returns. It has distinct advantages over both manually filing your tax return and hiring a tax professional.Simple to use and convenient.It is convenient to use an online tax service.A More Affordable Option...Quicker receipt and turnaround.Useful for keeping records. Tax software analyzes your financial data using IRS tax rules to locate every deduction and credit you can legally use to lower your tax burden.To learn more about Tax software refer
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Suppose the monopolist has total fixed costs equal to $5 and a variable cost equal to $4 per unit for all units produced. What is the total profit if she operates at her profit-maximizing price?.
Suppose the monopolist has total fixed costs equal to$ 5 and a variable cost equal to$ 4 per unit for all units produced.$ 11 is the total profit if she operates at her profit-maximizing price.
Total profit = Price x volume
Total cost = Total fixed cost Variable cost per unit x volume
Borderline profit = Current total profit-former total profit/ Current volume-former volume
Borderline cost = Current total cost-former total cost/ Current volume former volume
Maximum profit = Total profit Total cost maximum profit = 24- 13 = 11The total profit if he operates at her profit-maximizing price ice.$ 11.
As Irving Fisher explained, a monopoly is a noncompetitive demand that creates a situation in which a particular person or establishment is the sole supplier of a particular thing. A monopoly zilches an individual, group, or company that controls and controls the demand for a particular good or service. This lack of competition and lack of indispensable goods and services means that monopolists apply enough power in their businesses to charge high prices.
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a bond has a par value of $1,000, a current yield of 6.66 percent, and semiannual coupon payments. the bond is quoted at 98.05. what is the amount of each coupon payment?
$32.65 is the amount of each coupon payment.
Bond price = $1000 x 98.5% = 980.5. Price / Annual Coupon = Current Yield.
6.66% =Annual coupon / 980.5. Annual coupon: $980.5 x 6.66% = $65.30. Each coupon payment equals $65.30/2 =$32.65.
The annual interest rate that is paid on a bond from the date of issuance until maturity is known as a coupon and is represented as a percentage of the face value of the bond. Typically, when referring to coupons, we use the coupon rate (the sum of coupons paid in a year divided by the face value of the bond in question).
Bonds that have coupons, also referred to as bearer bonds or coupon bonds, are not registered, so simply possessing one of them entitles the holder to ownership.
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easements and profits are similar in that they are neither ownership nor possessory interests. in the scenario described in the case, what type of easement rights does john have?
john have An easement appurtenant is a particular kind of easement that connects two properties as dominating and servient tenement estates.
Real property, which is characterized as being immovable or fixed to the land, includes an appurtenance. Appurtenances in this situation have to do with the land. In legal agreements, such as the sale or transfer of a property, appurtenants confer ownership of specific goods to the party who owns the property. The dominant estate reaps the benefits of the easement, whereas the servient estate grants the easement. The easement of necessity is the appurtenant easement that is absolutely necessary for the use and enjoyment of the subject property. However, the quasi easement is what makes it possible to use the property in a reasonable, comfortable, and more practical manner.
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suppose a starbucks tall latte costs $4.00 in the united states and 2.50 euros in the euro area. also, suppose a mcdonald's big mac costs $4.50 in the united states and 3.60 euros in the euro area. if the nominal exchange rate is 0.80 euros per dollar, which goods have prices that are consistent with purchasing-power parity? a. both the tall latte and the big mac b. neither the big mac nor the tall latte c. the big mac but not the tall latte d. the tall latte but not the big mac
The nominal trade fee tells how plenty overseas foreign money may be exchanged for a unit of home foreign money.
The required details for nominal exchange rate in given paragraph
1. b. the Big Mac however now no longer the tall latte.
($1 = 0.eighty euro
So, Price of tall latte in euros have to be 4*0.8 = 3.2 euros which does now no longer identical 2.five euros.
Price of huge mac in euros have to be (4.five)*0.8 = 3.6 euros equals real fee of 3.6 euros.)
2. a. most effective the nominal trade fee depreciates.
(As US reports inflation, nominal trade fee will depreciate however actual trade fee will now no longer change.)
The nominal trade fee is the quantity of home foreign money had to buy overseas foreign money. In economics, the NEER is a trademark of a country's worldwide competitiveness in phrases of the overseas trade (forex) market.
Exchange fees are decided through factors, such as hobby fees, confidence, the contemporary account on stability of payments, monetary boom and relative inflation fees.
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jim is an employee for abc, inc. jim's employment contract specifically authorizes him to purchase components up to a purchase price of $100,000. jim buys a water pump for his employer for $55,000. what best describes jim's authority?
Express authority. The authority that an employee has in writing in the contract with the employer that the agent represents is known as express authority.
Inside the fields of sociology and political technology, authority is the valid strength of a person or organization over different human beings.[1] In a civil kingdom, authority is practiced in ways any such judicial department or a government branch of the presidency. In the exercise of governance, the authority and electricity of the phrases are erroneous synonyms. The term authority identifies the political legitimacy, which presents and justifies the ruler's right to workout the power of the presidency; and the time period power identifies the potential to accomplish an authorized intention, either by using compliance or by obedience; therefore, authority is the power to make selections and the legitimacy to make such legal selections and order their execution.
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Corporate governance methods are ultimately responsible for ensuring the honesty and integrity of the firm. This can be especially problematic for high-rising ""unicorn"" firms that sometimes grow more quickly than their governance structures can mature. Which one of the following is the best evidence that uber may be facing a problem of corporate governance?.
A statement which provides the best evidence that Uber may be facing a problem of corporate governance is: a. Uber has shown open disregard for laws and partnerships with Carnegie Mellon University.
What is good corporate governance?In Business management, good corporate governance can be defined as a strategic management procedures and processes which provides businesses organizations (companies or firms) with good leadership, honesty, transparent rules, controls, integrity, and ensures that all decisions align with the interests of shareholders and stakeholders.
What are the four principles of good corporate governance?Generally speaking, there are four (4) main principles of good corporate governance and these include the following:
TransparencyFairnessAccountabilityResponsibilityUnder good corporate governance, a situation which would suggest that a business firm such as Uber (a high-rising unicorn) is facing a problem of corporate governance is if it shows an open disregard for laws or in its partnerships with other business firms.
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Complete Question:
Corporate governance methods are ultimately responsible for ensuring the honesty and integrity of the firm. This can be especially problematic for high-rising "uni-corn" firms that sometimes grow more quickly than their governance structures can mature. Which one of the following is the best evidence that Uber may be facing a problem of corporate governance?
a. Uber has shown open disregard for laws and partnerships with Carnegie Mellon University.
b. The SEC required the Uber board of directors to disband and brought in new members.
c. Uber reached a $50 billion valuation in only five years— two years faster than Face-book.
d. Dynamic pricing is a key to Uber's revenue stream.
e. Taxi industry unions are rallying against the disruptive innovations Uber is bringing into the market.
on june 1, sawyer co. borrowed $5,000 by extending their past-due account payable with a 45-day, 12% interest-bearing note. on july 16, the due date, sawyer pays the amount due in full. sawyer would record this payment with a (debit/credit) to interest expense in the amount of .
On June 1, sawyer co. borrowed $5,000 by extending their past-due account payable with a 45-day, 12% interest-bearing note. on July 16, the due date, the sawyer pays the amount due in full. sawyer would record this payment with a (debit/credit) debit to interest expense in the amount of $75.
In this case, the total interest expense is $5,000 x 12%/12 x 1.5 months = $75.
Therefore, the total debit to interest expense is $75.
Interest is the price you pay to borrow cash or the value you fee to lend money. interest is most usually reflected as an annual percent of the amount of a loan. This percentage is known as the hobby fee on the loan.
Interest is the value of borrowing cash. commonly expressed as a percent, it amounts to a fee or greater price the borrower pays the lender for the financed sum. when you make a charge on an easy-interest loan, the payment first is going towards that month's interest, and the rest goes in the direction of the primary.
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