Answer:
Yes, the cash balance is less than $75,000
Explanation:
a. b
Current ratio is more than required : No violation
Debt to equity ratio is less than stated: No violation
Cash balance as per books exceed 75000 but as per bank book less: violation
(As per bank reco the amount is different as company may not recorded bank charges and expenses as reflected in bank statement.
Answer:
a. $14,000 and $14,000
b. $17,000 loss
Explanation:
a. The computation of the depreciation expense using the straight line method is shown below:
Straight-line method:
= (Acquired value of the truck - residual value) ÷ (useful life)
= (79,000 - $7,000) ÷ (5 years)
= ($70,000) ÷ (5 years)
= $14,000
In this method, the depreciation is same for all the remaining useful life
So for year 1 and year 2 the same amount of depreciation is to be charged
b. Now for computing the gain or loss first we have to determine the book value which is shown below:
For two years, the depreciation would be
= $14,000 × 2 years
= $28,000
Now the book value would be
= Acquired value of an asset - accumulated depreciation
= $79,000 - $28,000
= $51,000
So, the loss would be
= Book value - sale value
= $51,000 - $34,000
= $17,000
Answer:
He believed in a laissez-faire policy in which the government does not interfere in commerce
Explanation:
In his book " The wealth of nations", he states that the key of social well being is economic growth, which can be reflected in the division of work and in the free competition. He beleived in an "invisible hand" that would naturally regulate the behaviour of markets, without government implication in it.
Answer:
growing-equity mortgage
Explanation:
When a person obtains a growing equity mortgage, they have to pay a higher monthly payment every month. These increases must be included in the mortgage contract and they are beneficial if the borrower's income is expected to increase in the future. The interest rate remains the same, it doesn't change.
