Describe the saving-borrowing-investing cycle.

Answers

Answer 1

Answer: It's a cycle that people in general do to achieve financial stability

Here is an example of the saving - borrowing - investing :

- a person borrow money from the Bank
- With that money, he use it to invest in some sort of business
- That business generate revenue and that revenue could be used in that person's saving
- since now he got more saving, now he can be the one who lend the money

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Why is this zero based budget the best method of budgeting?

Answers

Zero based budget the best method of budgeting - Reason:

Zero-based budgeting (ZBB) is a budgeting method where all expenses of each new phase have to be justified. The zero-based budgeting process beginning at zero bases and each component is examined for its requirements and expenses within an organization.

Zero-based budgeting can help to reduce costs by preventing massive increases or reduced to expenditure for the subsequent period. But this has taken far more time than conventional cost-based budgeting. It’s a time-consuming process.

It is also a case of actual revenue because their contributions are easier to justify than in customer services and R&D departments.

It helps you save a lot of money, if you are on zero budget you wont be as willing to spend money on non sense rather than if you were to have say a weekly budget to where you know how much money you can spend on non sense. hope that makes sense.

Sort the ideas related to these two types of loans into the correct categories.has more risk for the lender
Secured Loan
Unsecured Loan
is not backed with collateral
has less risk for the lender
can include a down payment
is backed with collateral
does not include a down payment
Secured loan
Unsecured loan

Answers

Answer:

Box 1

Can include a down payment

Is back with a collateral

Has less risk for the lender

Box 2

Is not backed with a collateral

Does not include a down payment

Has more risk for the lender

Explanation:on edge hope helps

Answer:

Box 1

Can include a down payment

Is back with a collateral

Has less risk for the lender

Box 2

Is not backed with a collateral

Does not include a down payment

Has more risk for the lender

Explanation:on edge hope helps

MaxiesBalance sheet as at june 30, 2005
$ $ $
fixed assets(at cost$22890) 10060
current asset
stock. 810
debtor. 4330
prepayment 1350
cash at bank 8370
cash in hand 150

less current liabilities
sundry 200
loan interest 500. 700. 14310
net current asset 24370
loan 10000
14370
capital (July 1 2004 ) 21110
add profit. 29860
50970
less drawing 36600
14370

what is the current ratio