Craig has just been quoted what appears to be a very competitive loan for $3,500 to be paid back in 36 monthly payments of $123.47 and a finance charge of $945 . However, the lender said that the interest would be calculated using the add-on method. Using the n-ratio method of estimating the APR, what is the APR on this loan?
a. 14.9 percent
b. 16.3 percent
c. 9.0 percent
d. 13.2 percent
b
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The journal entry a company uses to record partially funded pension rights for its salaried employees at the end ofthe year is
a. debit Salary Expense; credit Cash b. debit Pension Expense; credit Unfunded Pension Liability c. debit Pension Expense; credit Unfunded Pension Liability and Cash d. debit Pension Expense; credit Cash
Answer the following statements true (T) or false (F)
SFAC No. 5 makes clear that the concepts discussed in the conceptual framework apply to other means of disclosure in addition to financial statements.
The local cheese vendor offers to sell Taco Loco 200 pounds of cheese for these three products. Taco Loco should:
A) refuse to buy any cheese. B) buy less than 80 pounds of cheese for $1.45 per pound. C) buy 46 pounds or less of cheese for $1.45 or less. D) buy at least 126 pounds of cheese for $5.33 or less.
Monte Miller buys a television from Discount Electronics on credit. Discount gives a written assignment of the debt to Metro Finance Co, but neglects to mail notice of the assignment to Miller until a few months later. In the meantime, Metro assigns the debt to Live Finance Co, which immediately sends notice of it assignment to Miller. Discount refuses to cooperate with either Metro Finance or Live Finance in collecting the debt. Which of the following statements is TRUE?
A) The assignment to Live is unenforceable because it was fraudulent. A creditor cannot assign the same debt twice. B) The assignment to Live is unenforceable because it is not complete and unconditional. C) The assignment to Metro takes precedence over the one to Live because it was made first. D) The assignment to Live is enforceable as an equitable assignment. E) The assignment to Live takes precedence over the earlier one to Metro because Live gave notice to Miller first.