Answer:
11.79%
Explanation:
The computation of the cost of the new common stock is given below:
As we know that
The Cost of New common Stock is
= [Expected Dividend ÷ (Price - Floatation cost)] + growth rate
where,
Expected Dividend is
= Current Divided × (1 +Growth rate)
= $1.5 × (1 +0.08)
= $1.62
Now cost of new common stock is
= [$1.62 ÷ ($45 - $2.25)] + 0.08
= ($1.62 ÷ $42.75) + 0.08
= 0.1179
= 11.79%
A manufacturing company applies factory overhead based on direct labor hours. At the beginning of the year, it estimated that factory overhead costs would be $348,400 and direct labor hours would be 47,000. Actual manufacturing overhead costs incurred were $304,000, and actual direct labor hours were 52,400. The journal entry to apply the factory overhead costs for the year would include a
Answer:
Journal Entry
Debit Work-in-Process $388,284
Credit Manufacturing Overhead $388,284
To record the application of factory overhead costs for the year.
Explanation:
a) Data and Calculations:
Estimated factory overhead costs = $348,400
Estimated direct labor hours = 47,000
Predetermined overhead rate = $7.41 ($348,400/47,000)
Actual overhead costs = $304,000
Actual direct labor hours = 52,400
Applied overhead costs = $388,284 (52,400 * $7.41)
b) The overhead applied to the production for the year will be the actual direct labor hours by the predetermined overhead rate. This yields a cost that is greater than the actual overhead costs, which means that the manufacturing overhead was overapplied. The cause of this situation is the number of actual direct labor hours worked vis-a-vis the actual overhead costs and the predetermined rate.
Over the past decade, many American candy companies have opened factories in Mexico and Canada to produce candy. The companies, including Hershey Company, Brach's Confections, and Ferrara Pan, then ship candy back to the United States for sale. Although lower wages in Mexico might explain part of this move, wages in Canada are comparable to U.S. wages. Price floors (price supports) for the sugar industry encouraged American candy companies to move production out of the United States. Describe how the enactment of a sugar price floor impacted the market for candy in the United States, resulting in the movement of manufacturing.
Answer:
The sugar industry in the US is very powerful and has been able to establish trade barriers and import quotas that affect domestic prices. Sugar prices in the US are extremely high compared to prices in any other country, including Canada, Mexico, China, European nation, i.e. American sugar is the most expensive in the world.
Besides imposing trade barriers, the government also imposes a binding price floor. Binding price floors always result in deadweight losses since the quantity demanded is lower than equilibrium. This is why American candy manufacturers move their production overseas. the highest cost in the candy industry is actually sugar, and wherever they decide to relocate their factories it will always be cheaper.
Catherine Jones has determined the following information about her own financial situation. Her checking account is worth $750 and her savings account is worth $1,900. She owns her own home that has a market value of $91,000. She has furniture and appliances worth $11,000 and a laptop worth $3,300. She has a car worth $11,500. She has recently purchased a mutual fund worth $5,500 and she has a retirement account worth $37,000. What is the total value of her assets
Answer:
$150,450
Explanation:
With regards to the above, her assets are: checking account, savings account, Home, furniture and appliances, laptop, mutual fund, car and retirement account.
= $750 + $1,900 + $91,000 + $11,000 + $3,300 + $5,500 + $37,000
= $150,450
Therefore, the total value of her asset is $150,450
An insurance company accepts an obligation to pay 10,000 at the end of each year for 2 years. The insurance company purchases a combination of the following two bonds at a total cost of X in order to exactly match its obligation: 1-year 4% annual coupon bond with a yield rate of 5% 2-year 6% annual coupon bond with a yield rate of 5% Calculate X.
Answer:
$18,594.10
Explanation:
Insurance company has to pay $10,000 for two year with rate of 5% since market rate remain same in both the bond.
X = PV (PMT, N, I/Y)
X = PV(10000, 2, 5)
X = 18594.1043
X = $18,594.10
Stevens Company's inventory on March 1 and the costs charged to Work in Process—Department B during March are as follows:
Beginning work in process, 12,000 units, 60% completed $62,400
From Department A, 55,000 units started this period
Direct materials added 115,500
Direct labor incurred 384,916
Factory overhead incurred 138,000
During March, all direct materials were transferred from Department A, the units in process at March 1 were completed, and of the 55,000 units entering the department, all were completed except 6,000 units that were 70% completed. Inventories are costed by the first-in, first-out method.
Required:
Prepare a cost of production report for March.
Solution :
Particulars Direct materials Conversions
Cost per equivalent unit
Total costs for month March in Department B 115500 522915
Total equivalent units 55000 58000
Cost per equivalent unit 2.10 9.0158
So, total conversion cost for March in the Department B
= 384915 + 138000
= $ 522915
Costs charged to production:
Direct Materials Conversion Total cost
Costs costs
Inventory in process, March 1 62400
Cost incurred in March 638415
Total costs accounted by the department 700815
Therefore, the cost incurred in March = 115500 + 384915 + 138000
= $ 638415
In Marubeni America Corp. v. United States, the federal appellate court ruled that the Nissan Pathfinder was, for tariff classification purposes a motor vehicle for the transport of passengers. The classification of goods is significant because: Question 16 options: A) the fair value will vary depending on the classification B) the subsidy will vary depending on the classification C) the tariffs will vary depending on the classification D) the dumping duty will vary depending on the classification
Answer: the tariffs will vary depending on the classification.
Explanation:
Tariff is a form of tax that is usually imposed on the imports that are brought from other countries to a particular country.
With regards to information provided in the question, the classification of goods is significant because the tariffs will vary depending on the classification.
Data pertaining to the postretirement health care benefit plan of Danielson Delivery Service include the following for the current calendar year: Service cost $ 150,000 APBO, January 1 $ 800,000 Plan assets (fair value), January 1 $ 80,000 Prior service cost (current year amortization, $2,000) $ 90,000 Retiree benefits paid (end of year) $ 90,000 Net gain (current year amortization, $1,000) $ 92,000 Contribution to health care fund (end of year) $ 85,000 Return on plan assets (actual and expected) 10 % Discount rate 8 % Required: 1. Determine Danielson's postretirement benefit expense for the current year.
Answer: $207,00
Explanation:
Postretirement benefit for the year is:
= Service cost + Interest cost + Amortization of prior service cost - Return on plant assets - Amortization of net gain
Interest cost = Discount rate * Actual Projected benefit obligation (APBO)
= 8% * 800,000
= $64,000
Return on plant assets = Return on plan assets (actual and expected)* Plan assets
= 10% * 80,000
= $8,000
Postretirement benefit = 150,000 + 64,000 + 2,000 - 8,000 - 1,000
= $207,000
Items from the 2015 income statement, statement of retained earnings, and balance sheet of Activision Blizzard, Inc., are listed below in alphabetical order. Solve for the missing amounts. (Loss amounts should be indicated with a minus sign.)
Activation Blizzard, Inc
Common Stock $3180
Dividends 130
Net Income (Loss)
Retained Earnings, Beginning of Year 3614
Retained Earnings, End of Year 5047
Total Assets 15,584
Total Expenses
Total Liabilities 7,357
Total Revenues 4,567
Answer and Explanation:
The computation of the missing amounts are shown below:
Common Stock $3,180
Dividends $130
Net income (loss) $1,563 (($5,047 - $3,614) + $130)
Retained earnings, beginning of year $3,614
Retained earnings, end of year $5,047
Total assets $15,584
Total expenses $3,004 ($4,567 - $1,563)
Total liabilities $7,357
Total revenues $4,567
Common Stock $3,180
Dividends $130
Net income (loss) $1,563 (($5,047 - $3,614) + $130)
Retained earnings, beginning of year $3,614
Retained earnings, end of year $5,047
Total assets $15,584
Total expenses $3,004 ($4,567 - $1,563)
Total liabilities $7,357
Total revenues $4,567
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What are the costs and sources of inefficiency in a barter B apply.) A. Productivity is increased by specialization. B. Each good has only one price. C. There is increased time and effort spent looking for trading partners. D. There is a lack of standardization. E. There is difficulty in accumulating wealth. OF. Transactions costs are almost always high.
Answer:
C)There is increased time and effort spent looking for trading partners.
D)There is a lack of standardization.
E)There is difficulty in accumulating wealth.
Explanation:
barter in a trade can be regarded as a system of exchange that involves exchange of goods and services for another without using money as a medium of exchange. Barter is been considered as 'inefficient' as a result of the needs for 'double coincidence of wants'. For instance in a situation whereby someone is buying particular amount of another's goods, but the payment he/she has is for just one indivisible unit of another good, and the worth is higher than what he/she want to obtain, in this case there won't be barter transaction.
It should be noted that the costs and sources of inefficiency in a barter are;
✓There is increased time and effort spent looking for trading partners.
✓There is a lack of standardization.
✓There is difficulty in accumulating
Analyze the role individual team members and leaders play in ensuring or detracting from team success. In the analysis, considering the advantages and disadvantages of the team effectiveness model (Exhibit 7.2). For example, what would be some of the effective and ineffective individual and leadership behaviors regarding team environmental, design, process, and effectiveness practices
The correct answer to this open question is the following.
Unfortunately, you did not attach the team effectiveness model (Exhibit 7.2). You did not a link or picture of it.
However, trying to help you, we can comment on the following model.
We are going to use the Katzenbach and Smith Team Model.
This team effectiveness model has three important components at the base of the pyramid: collective work product, commitment, and personal growth.
From there, the next level indicates the specific goals of the team, the ground rules, the common approach, and the meaningful purpose of the team.
Going up the pyramid we have the Skills and Accountability.
In the Skills, the authors include interpersonal skills, technical skills, and problem-solving abilities. Regarding Accountability, the authors include mutual and personal accountability.
At the very top of the pyramid, we have the performance results.
This model helps to establish the foundation of the role individual team members and leaders play in ensuring team success.
For this to happen, leaders have to set the example of the n¿behavior they like to observe on team members. On the other hand, setting that example, team members are expected to follow through with the goals and expectations, following high standards of performance to accomplish goals.
Stock A has the following returns for various states of the economy State of the Economy Probability Stock A's Return Recession 9 72 Below Average 16 15 Average 51 16 Above Average 14 35 Boom 10 85 Stock A's expected return is Group of answer choices 13.8 12.7 16.5 9.9
Answer:
the expected return is 12.7%
Explanation:
The computation of the expected return is given below:
Expected return = Respective probability × respective return
= (-72 × .09) + (-15 × .16) + (16 × .51) + (35 × .14) + (85 × .10)
= -6.48% -2.4% + 8.16% + 4.9% + 8.5%
= 12.68%
= 12.7%
Hence, the expected return is 12.7%
The above formula should be used for the same.
Many investment advisors argue that after stocks have declined in value for 2 consecutive years, people should invest heavily because the market rarely declines 3 years in a row. a) Since the stock market began in 1872, there have been two consecutive losing years eight times. In six of those cases, the market rose during the following year. Does this confirm the advice
Answer: Yes it does
Explanation:
The investment advisors say that the market rarely declines three years in a row.
Since 1872, it has declined two years in a row 8 times and three years in a row, only twice.
This means out of 8 times, it declined twice. Percentage of times it declined was:
= 2 / 8 * 100%
= 25%
25% while not rare, is a good enough percentage to trust the advice of the investment advisors.
Claremore Industries uses a weighted-average process-costing system. All materials are added at the beginning of the process; conversion costs are incurred evenly throughout production. The company finished 40,000 units during the period and had 15,000 units in progress at year-end, the latter at the 40% stage of completion. Total material costs amounted to $220,000; conversion costs were $414,000. The cost of the ending work in process is:
Answer: $78000
Explanation:
First, we have to calculate the total.costnoer equivalent unit which will be the addition of the material cost per unit and the conversion cost per unit. This will be:
Material cost per unit = $220,000 / (40,000+15,000)
= $220,000 / 55000
= $4
Conversion cost per unit= $414,000 / (40,000 + (15,000*40%)
= $414000 / 46000
= $9
Therefore, total cost per equivalent unit will be: $4 + $9 = $13
Then, the equivlant unit of the ending work in process would be calculated as:
= 15,000 × 40%
= 15000 × 40/100
= 15000 × 0.4
= 6,000
The cost of the ending work in process will then be:
= 6,000 × $13
= $78,000
Suppose the United States has two utilities, Commonweath Utilities and Consolidated Electric. Both produce 20 million tons of sulfur dioxide pollution per year. However, the marginal cost of reducing a ton of pollution for is $ per ton and the marginal cost of reducing a ton of pollution for is $ per ton. The government's goal is to cut sulfur dioxide pollution in half (by 20 million tons per year). If the government issues 10 million tradable pollution permits to each utility, what will be the cost of eliminating half of the pollution to society?
Answer:
$4,000 million per year
Explanation:
Calculation for what will be the cost of eliminating half of the pollution to society
Cost of eliminating = (200 per ton x 20 million tons)
Cost of eliminating = $4,000 million per year.
Therefore the cost of eliminating half of the pollution to society will be $4,000 million per year.
Which categories of goods used by ordinary people are most affected by scarcity? Use examples from two of these categories and explain how the scarcity of these goods might arise and how this scarcity would affect most people.
Answer:
nondurable and consumer goods
Explanation:
Nondurable goods are affected by scarcity because their time life is limited. For example, if the capital goods required for its transportation or conservation of ice cream broke down, the product would ruin very easily.
Consumer goods are generally mass consumed. For example clothes are consumed by most of us during the year, but most of them are imported nowadays. Any trade barrier that delayed their supply would cause a rapid shortage.
Harrison Company maintains a checking account at the First National City Bank. The bank provides a bank statement along with canceled checks on the last day of each month. The July 2018 bank statement included the following information:
Balance, July 1, 2018 $56,428
Deposits 180,100
Checks processed (193,210 )
Service charges (60 )
NSF checks (1,500 )
Monthly loan payment deducted directly by bank from account (includes $520 in interest) (3,620 )
Balance, July 31, 2018 $38,138
The company's general ledger account had a balance of $38,918 at the end of July. Deposits outstanding totaled $6,300 and all checks written by the company were processed by the bank except for those totaling $8,420. In addition, a $2,000 July deposit from a credit customer was recorded as a $200 debit to cash and credit to accounts receivable, and a check correctly recorded by the company as a $30 disbursement was incorrectly processed by the bank as a $300 disbursement.
Required:
a. Prepare a bank reconciliation for the month of July.
b. Prepare the necessary journal entries at the end of July to adjust the general ledger cash account.
Answer:
A. Corrected bank balance $35,538
Corrected cash balance $35,538
B. 1. Dr Cash 1,800
Cr Accounts receivable 1,800
2.Dr Miscellaneous expense (Bank service charges) 60
Dr Accounts receivable (NSF Check) 1,500
Dr Interest expense 520
Cr Cash 2,080
Explanation:
a. Preparation of a bank reconciliation for the month of July.
BANK RECONCILATION STATEMENT
Bank balance to correct balance
Balance per bank statement $38,138
Add: Deposits outstanding 6,300
Add: Bank error in recording check (300-30) 270
Deduct: Checks outstanding ($8,420)
Corrected bank balance $35,538
Book balance to corrected balance
Balance as per books $38,918
Add: Error in recording cash receipt (2,000-200) 1,800
Deduct: NSF checks (1,500)
Deduct: Automatic monthly loan payment (3,620)
Deduct: Service charges (60)
Corrected cash balance 35,538
b. Preparation of the necessary journal entries at the end of July to adjust the general ledger cash account.
1. Dr Cash 1,800
Cr Accounts receivable 1,800
(Being To record the correct error in recording cash receipt)
2.Dr Miscellaneous expense (Bank service charges) 60
Dr Accounts receivable (NSF Check) 1,500
Dr Interest expense 520
Cr Cash 2,080
(To record credit to cash)
Marcus was offered a job as a senior manager by Super Corp. The offer, which was made over the phone, was for a three-year contract for $120,000 salary per year. Marcus orally accepted, there was no writing. The state in which Marcus was offered the job requires that such contracts be in writing. Marcus quit his current job, which paid $75,000 a year, and headed to the state where Super Corp was headquartered. When he arrived, the director at Super Corp who had originally offered him the job said that they were revoking and that there was no contract, as Marcus never signed an employment agreement. If Marcus sues Super Corp, what is the likely result
,Answer:
-Marcus is owed something by Super Corp because he relied reasonably and to his detriment on Super Corp's offer.
Explanation:
Employment contracts can be written, oral, or implied and each of these are binding to some extent.
In the given instance it is required that employment should be written in the state where Super Corp operates.
So Marcus will not be able to compel them to give him a job as the offer was made and accepted orally.
However the offer resulted in him quitting his current job, which paid $75,000 a year, and heading to the state where Super Corp was headquartered.
He relied on the offer to his detriment of losing his current job, so Super Corp owes him for the damages incurred
On September 1, Capitol Maintenance Company contracted to provide monthly maintenance services for the next seven months at a rate of $2,300 per month. The client paid Capitol $16,100 on September 1. The maintenance services began on that date. Assuming Capitol records deferred revenues using the alternative treatment, what would be the adjusting entry recorded on December 31
Answer:
Debit Unearned Revenue, Credit Service Revenue for $9,200
Explanation:
Date Account Titles Debit Credit
Sept 1 Cash $16,100
Unearned service revenue $16,100
Dec 31 Unearned service revenue $9,200
Service Revenue $9,200
($2300 * 4 months)
Consider the following yields to maturity on various one-year zero-coupon securities: Security: Treasury AAA Corporate BBB Corporate B Corporate Yield (%): 4.6 4.8 5.6 6.2 The price (expressed as a percentage of the face value) of a one-year, zero-coupon, corporate bond with a BBB rating is closest to:
Answer:
94.70%
Explanation:
The computation of the price expressed as a percentage of the face value is given below:
= Price ÷ Face value × 100
= (Face value ÷ (1 + YTM)) ÷ Face value × 100
= ($1,000 ÷ (1 + 5.6%)) ÷ ($1,000) × 100
= $946.97 ÷ $1,000 × 100
= 94.70%
Hence, the price expressed as a percentage of the face value is 94.70%
Here we assume the face value be $1,000
A firm produces truffles by using labor and capital. The price of labor is $10 per unit, and the price of capital is $20 per unit. At current output level, the marginal product of labor is 40 truffles and the marginal product of capital is 60 truffles. To reduce the total cost of producing the current quantity of truffles, how should the firm change its spending on labor and capital
Answer: See explanation
Explanation:
With the information given in the question, the firm should change its spending on labor and capital by increasing its labor and at thesame time, also reducing capital.
This is because since the marginal product of labor is 40 truffles and the price of labor is $10 per unit, it means that 4 truffles/dollar is being spent on labor, while for capital, 3 truffles/dollar is being spent.
Identify whether each of the following statements best illustrates the concept of consumer surplus, producer surplus, or neither.
Statement Consumer Surplus Producer Surplus Neither
Even though I was willing to pay up to $49 for a jersey sweater, I bought a jersey sweater for only $39.
I sold a used laptop for $106, even though I was willing to go as low as $100 in order to sell it.
I sold a watch for $52 on eBay last week. This week, someone offered me $110 for
Answer:
Consumer surplus
Producer surplus
Neither
Explanation:
Consumer surplus is the difference between the willingness to pay of a consumer and the price of the good.
Consumer surplus = willingness to pay – price of the good
I was willing to pay $49 for the sweater but paid $39, thus the consumer surplus is $10
Producer surplus is the difference between the price of a good and the least price the seller is willing to sell the product
Producer surplus = price – least price the seller is willing to accept
The least amount i was willing to sell my laptop is $100 but i was paid $106 for it. The producer surplus is $6
The third statement is not about consumer or producer surplus. There is no information on the least amount the seller was willing to accept or the highest amount the consumer was willing to sell
How you see your self can make a great different
in how
you Communicate
Answer: It is not what you say but how you say it.
Explanation: I have always been a person who communicates well but with my flaws. Sometimes the tone of voice can be betrayed, so it is important to use the right one so that people can feel the warmth of the words. The way things are said is more than what is said. It is not a matter of lying but of saying things in a way that is real but at the same time within a framework of respect.
Allyson Cooke is a union member and an employee of a company that manufactures surgical equipment. She believes she has a grievance because her supervisor made her work an hour longer than usual for several days and has refused to pay her any overtime. Cooke should contact her _____, who represents union members to management when workers have complaints.
Answer: national union president
Explanation:
Since she wasn't paid for overtime, Cooke should contact her national union president, who represents union members to management when workers have complaints.
The aim of the national union is to seek solution to any challenges that are faced by their members. The union also make sure that their members have a comfortable working environment that is safe and also help on negotiating for better pay.
The name for a variety of methods used to examine how an amount will change if factors involved in predicting that amount change is: Cost analysis. Cost-volume-profit analysis. Sensitivity analysis. Contribution margin analysis. Factor analysis.
Answer:
Sensitivity analysis.
Explanation:
Sensitivity analysis studies how an economic variable would change due to changes in one of the input variables.
Due to the fact that the future is uncertain, it would be wise to accommodate a varying range of scenarios to be able to be well prepared for the future.
Sensitivity analysis involves changing one input at a time to determine how they would affect results.
For example, in determining NPV, there can be different ranges of discount rate
f
What is one key advantage to an employer-sponsored retirement plan?
Answer:
An employee's funds grow tax deferred in the plan. They don't pay taxes on investment earnings until they withdraw their money from the plan. An employee will pay income taxes and possibly an early withdrawal penalty if they withdraw their money from the plan.
Explanation:
I hope this helps. :D
One key advantage of an employer-sponsored retirement plan is the opportunity for employees to receive matching contributions from their employer.
Many employers offer a matching contribution as part of their retirement plan, which means that for every dollar an employee contributes to their retirement account, the employer will also contribute a certain amount, up to a specified limit.
This matching contribution is essentially free money provided by the employer to help employees save for retirement. It serves as an additional incentive for employees to participate in the retirement plan and contribute to their own savings.
Hence, The matching contribution is the key advantage to an employer-sponsored retirement plan.
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In a month, Carlos can produce a maximum of either 30 bushels of pears or 15 bushels of apples, or any linear combination in between. Similarly, Donna can produce a maximum of either 20 bushels of pears or 5 bushels of apples, or any linear combination in between.
a. What is the opportunity cost for Carlos to produce one more bushel of apples in terms of pears?
b. What is the opportunity cost for Donna to produce one more bushel of apples in terms of pears?
c. What would Donna and Carlos agree to as acceptable terms of trade?
Answer:
a. What is the opportunity cost for Carlos to produce one more bushel of apples in terms of pears?
opportunity cost to produce 1 more bushel of apples = 30 / 15 = 2 bushels of pears
b. What is the opportunity cost for Donna to produce one more bushel of apples in terms of pears?
opportunity cost to produce 1 more bushel of apples = 20 / 5 = 4 bushels of pears
c. What would Donna and Carlos agree to as acceptable terms of trade?
Donna has a comparative advantage in the production of pears, so she should produce pears and exchange them for apples produced by Carlos.
Any range between 1-2 pears (higher than 1, but lower than 2) exchanged for every apple would result in mutually beneficial trade.
The large percentage of population involved in agriculture in China indicates that most people consume an inadequate number of calories. most people must produce food for their own survival factory production cannot expand. the country imports most of its food. few people are unemployed
Answer:
The answer is "most people must produce food for their own survival".
Explanation:
Its large percentage of Chinese people involved in agriculture indicates that the majority of people have had to make food to sustain themselves. The processing of dairy products, wool, fruits, veggies, meat, livestock, eggs, and farmed fish is among the first nations in the world. Only with importance attached to opening farming with the outside world, China is becoming more and more closely connected with the other countries.
Imagine that you and a friend have developed a new sneaker and would like to manufacture the sneaker and sell it to Foot Locker. In a paragraph state what form of business organization you would select for your company and why. Be specific and include some advantages and
disadvantages of the organization you chose and those that you did not choose.
Answer:
biasnnsjzsnsnjsksslsllshsbsbjzkzmsnam
The cost allocation method most widely used because of its accuracy and ability to provide a detailed level of analysis is: Joint product costing. Accounting approach. Activity-based approach. Direct approach. Departmental approach.
Answer:
Activity-based approach.
Explanation:
Cost allocation in financial accounting can be defined as the process of identifying, gathering and assigning of cost across multiple cost objects such as products, inventory or departments.
There are various types of cost allocation methods and these are;
1. Sequential method.
2. Activity-based management method.
3. Reciprocal services method.
4. Direct method.
The cost allocation method most widely used because of its accuracy and ability to provide a detailed level of analysis is activity-based approach.
This ultimately implies that, activity-based approach gives entrepreneurs or employers all the necessary information on the actual cost of manufacturing, service delivery and other tasks associated with the business. Under the activity-based approach, the relationship between time and cost measurement is used to determine the cost price of goods and services.
Sorting forms of payments
Q; Sort the forms of payment into the two categories
Answer down below
Have money at time of purchase
- cash
- debit card
- check
Borrow money to make purchase
- credit card
Answer:
Have money at time of purchase.
Cash
For cash to be used to purchase something, the person must already have the required amount of cash in their possession already.
Debit Card.
Debit cards pay for purchases by using funds in the owner's bank account. This means that for a purchase to be processed, the owner must have funds in their account in the first place.
Check
This works much like the debit card above. If one wants to use a check, their bank account needs to have funds at the time of purchase so that the funds can pay for the purchase.
Borrow money to make a purchase
Credit Card
Credit card represent a debt owed to the issuing company that will need to be paid off eventually. This means therefore that whenever you use a credit card to make a purchase, you are borrowing the money used to fund the purchase.