Answer: A home equity loan can be risky because the lender can foreclose if you don’t make your payments. <em><u>The following statement is true. </u></em>
But the foreclosure depends on the value of your home. Defaulting on a home equity loan could result in a foreclosure. The home equity lender does depends on the value of your home. If you have equity in your home, your lender is more likely to start foreclosure, since it has a seemingly great chances of recovering some of its money. The more equity, the more likely your lender will choose to foreclose.
Answer:
Allowances
Debit Credit
$426,000
$ 85,000
$106,000
$405,000
Bad Debt
Debit - Credit
$85,000
Explanation:
Using T-Accounts you can see that the missing value in the Net Allowances are $106,000 that corresponds to the write-off accounts during the year.
The allowance begin the year with $426,000 then add 85 a bad expenses and finish the year with a balance of $405,000, so in the middle is the value of $106,000 , as a Debit value which means that the company write off that amount as uncollectible credits.
Answer:
1) 22%
2) YES as the return in the investment is 12% while the average cost of capital in this case; is of 8% hence there is a gain above the minimum accepted return.
Explanation:
IRR = 12%
weighted-average cost of capital:
DEBT 80,000 x 5% = 4,000
EQUITY 120,000 x 10% =<u> 12,000</u>
VALUE 200,000 16,000
16,000 / 200,000 = 8%
Answer: Budgeting helps to plan, coordinate , delegate responsibility and enhancing clarity in pursuit of an organisation.
Explanation: Every budgets is principally prepared to achieve a set target but there some limitations which makes it difficult for some companies to prepare and follow through with a budgeted plan action. Some of these limitations at any given point in time affect the activities of the organisation. It may be traced to Production capacity, shortage of labour, materials, space, Finance and customer demand. This limitation can at any point in time affect the overall plan of the organisation making it difficult to achieve their set target .
The correct option is "higher".
<span>During a period of rising prices, FIFO provides the higher net income figures and during the period of falling prices, LIFO provides the higher net income figures.
FIFO stands for first in, first out.
LIFO stands for last in, first out.</span>
