Explain why add-on installment loans are more expensive than simple interest loans
What will be an ideal response?
Answer: The add-on method generally results in an APR of close to twice the level of the stated interest rate because you are paying interest on the original principal over the entire life of the loan. Even though the amount of outstanding principal keeps decreasing as you pay back the loan, you still pay interest on the entire amount you originally borrowed.
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On December 31, Strike Company sold one of its batting cages for $55,000 . The equipment had an initial cost of$310,000 and has accumulated depreciation of $260,000 . Depreciation has been taken up to the end of the year.What is the amount of the gain or loss on this transaction?
a. loss of $55,000 b. loss of $5,000 c. gain of $5,000 d. gain of $55,000
Diversity is an important component of successful teams
Indicate whether the statement is true or false
Flowers, Inc had beginning retained earnings of $125,000 on January 1, 2017
During the year, Flowers declared and paid $40,000 of cash dividends and earned $55,000 of net income. Prepare a statement of retained earnings for Flowers, Inc for the year ending December 31, 2017. What will be an ideal response
Projects often cut across organizational lines
Indicate whether the statement is true or false