b. allow banks to monitor firms' check payment practices, which can yield information about their borrowers' financial conditions.
c. are a required minimum amount of funds that a borrower (i.e., a firm receiving a loan) must keep in a checking account at the bank.
d. are all of the above.
Answer:
The correct answer is D
Explanation:
Compensating balance is the balance which is to be minimum amount that is to maintained or kept in the bank account, so that could be used to offset the cost incurred by the bank for setting up the loan.
It is that balance which is not available for the company to use and might be needed to disclose in the notes of the borrower in the financial statements.
So, it is a specific kind of collateral, allow bank to monitor payment practice of firms and require to have a minimum amount that borrower need to keep in the checking account.
Answer:
$120,000
Explanation:
Investing activities: It records those activities which include purchase and sale of the long term assets. The purchase is an outflow of cash whereas sale is an inflow of cash
The computation is shown below:
Cash flow from Investing activities
Sale of land $100,000
Sale of equipment 50,000
Less: Purchase of equipment -30,000
Net Cash flow from Investing activities $120,000
The other transactions are related to the financing activity so we do not consider it in the computation part
' The portfolio might a young investor choose who is not afraid of risk ' is a. A portfolio of with a high percentage of stocks because it provide higher return as compared to other investment in the option provided.
A young investor who is not afraid of risk might choose a portfolio with a high percentage of stocks. This is because stocks have historically provided higher returns compared to other investment options over the long term. Young investors typically have a longer investment horizon, allowing them to ride out short-term market fluctuations and take advantage of the potential growth of stocks. They can afford to take on more risk because they have time to recover from any potential losses. Additionally, a high allocation to stocks can provide the opportunity for capital appreciation and wealth accumulation over time. While stocks can be volatile in the short term, a young investor can benefit from the potential compounding effect and the ability to diversify their holdings across different sectors or countries to manage risk.
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When selecting a career you should consider all of the following except what others think Option(a) is correct.
The career is a person's allegorical "venture" through learning, work and different parts of life as and when required.
A career can be characterized as the succession and assortment of occupations embraced for a critical time of an individual's life and with valuable open doors for progress. All the more extensively, 'career ' incorporates life jobs, relaxation exercises, learning.
There are many advantages to having a career reason. In the first place, it will move you to do and be more in your work, which will illuminate you and make your life wake up. You'll gain more headway in your career as well, since you're locked in and keen on the thing you're doing.
Career objectives are targets. Things, positions, circumstances connected with your expert life that you have focused on accomplishing. They can be present moment, such as getting an advancement or certificate, or they can be long haul.
Therefore Option(a) is correct.
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b) Independent professional services that report on specific written management assertions
c) Independent professional services that improve the quality of information for decision makers
d) Independent professional services that improve the operations of the client
Answer: Option B
Explanation: Assurance service is an autonomous professional service, generally provided by Chartered or Certified Public Accountants or Chartered Certified Accountants, with the purpose of improving details or information context to enable judgement call-makers to make more knowledgeable judgments.
Auditing by independent third party is the prime example of assurance services. Hence from the above we can conclude that the correct option is B.