Explain the differences between a negative amortization mortgage and a reverse mortgage
?A NAM is one in which the lender lowers monthly payments in the initial years, but the interest is added to the principal so that at the end of the initial period, the borrower's principal amount is actually larger. A reverse mortgage is one in which the borrower gets paid by the lender - the equity in the home is pledged in exchange for monthly payments in order to supplement retirement income.
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What are the reasons companies use coding schemes in their accounting information systems?
In organizational settings, coalition dynamics encounter "veto players." Briefly define and describe veto players.
What will be an ideal response?
Tough and Strong Inc expects to sell 51,000 units of its product in the coming year. Each unit sells for $45. Sales brochures and supplies for the year are expected to cost $7,000. Three sales representatives cover the Northeast region. Each one's base salary is $25,000, and each earns a sales commission of 5 percent of the selling price of the units he or she sells. The sales representatives use
their own transportation; they are reimbursed for travel at a rate of $0.40 per mile. The company estimates that the sales representatives will drive a total of 75,000 miles next year. From the information provided, calculate the company's budgeted selling expenses for the coming year. A) $226,750 B) $176,750 C) $151,750 D) $114,750
Which of the following statements is CORRECT?
A. A conservative financing policy is one where the firm finances part of its fixed assets with short-term capital and all of its net working capital with short-term funds. B. If a company receives trade credit under terms of 2/10 net 30, this implies that the company has 10 days of free trade credit. C. One cannot tell if a firm uses a current asset financing policy that matches maturities, is conservative, or is aggressive without an examination of its cash budget. D. If a firm has a relatively aggressive current asset financing policy vis-รก-vis other firms in its industry, then its current ratio will probably be relatively high. E. Accruals are an expensive but commonly used way to finance working capital.