For recording the required adjusting entry, if any we need to know that Every adjusting entry will have at least one income statement account and one stability sheet account. Cash will in no way be in an adjusting entry.
Which of the following events would no longer require an end-of-year adjusting entry?Providing offerings on account does now not require an end-of-year adjusting entry. Accounts receivable is accelerated when offerings are supplied on account and is diminished when charge is acquired from customers.
What happens if adjusting entries are no longer prepared?The reason of adjusting entries is to ensure that your financial statements will reflect accurate data. If adjusting entries are now not made, these statements, such as your stability sheet, income and loss statement, (income statement) and money drift announcement will no longer be accurate.
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https://brainly.com/question/13933471#SPJ4if an individual benefits from the activities of an organization but does not contribute to the organization, it is known as
Answer:
If an individual benefits from the activities of an organisation but does not contribute to the organisation, it is known as the free rider problem.
Explanation:
A free rider is someone who wants others to pay for a public good but plans to use it themselves; if many people do this, the public good may never be provided.
The "free rider conundrum" is a market failure that occurs when consumers use resources, goods, or services without paying for them. If there are too many free riders, there could be an excess of resources, goods, or services. There would be a problem with free riders as a result. Typical illustrations of the problem with public goods (goods with non-excludable benefits).
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what would be the equilibrium price and quantity in cameroon and nigeria if free trade existed between the two countries?
Equilibrium in Free Trade: Large Country Case The equilibrium free trade price (PFT) and quantity traded (QFT), where QFT = XSUS (PFT) = MD Mex (PFT), are determined by the intersection of the U.S. export supply and Mexican import demand.
See "Depicting a Free Trade Equilibrium" in Figure 7.5.The price that brings together the demand for Mexican imports and the supply of American exports must be the free trade price, or PFT. The price that answers the algebraic problem XSUS(PFT)=MD Mex (PFT) is the free trade price.
Since SUS(PFT)DUS(PFT)=DMex(PFT)SMex(PFT) and SUS(PFT)+SMex(PFT)=DUS(PFT)+DMex(PFT), this also implies that global demand and supply are equal.
Equilibrium in Free Trade: Case of a Small Country The assumption of a small country states that the nation's imports constitute a very small portion of the global market—so small that even a complete reduction in imports would have no discernible effect on global demand for the product and, consequently, no effect on global prices.
To portray a deregulation harmony utilizing a commodity supply and import request outline, we should redraw the product supply bend considering the little nation suspicion. At the level of the world price, the assumption implies that the export supply curve is horizontal. For this situation, we call the bringing in country little. It views the world price as exogenous from the perspective of the small importer nation because it cannot influence it. From the exporter's point of view, it is willing to supply the importer with as much of the product as they need at the current global price.
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mary is looking for a job cutting hair. one option is self-employment at the manchester salon, where she would pay $840 per month to rent a station and keep all of her earnings. another option is to work at a franchise, where she would just have to pay the salon $8 for every haircut. if she performed a certain number of haircuts every month, the amount paid to either salon would be the same. how much would mary pay? how many haircuts would that be?
A lottery where awards are given out to the victors from among those taking a chance. a decision made by a lottery.: a situation in which the conclusion appears to be determined by random.
What do you mean Lottery ?At the Maryland Lottery headquarters in Baltimore, 1800 Washington Boulevard, winning tickets of any value may be cashed. Your ticket must be redeemed at the Lottery office if its value exceeds $25,000.
Fortunately, the shop is where you can pick up your reward money. Lottery shops are able to redeem all winning tickets for up to $600 in prizes. Cash, certified checks, cashier's checks, company checks, money orders, or any combination of these can be used by retailers to pay prizes.
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information for two alternative projects involving machinery investments follows: project 1 project 2 initial investment $ (120,000) $ (90,000) salvage value 0 10,000 annual income 15,000 12,000 a. compute accounting rate of return for each project. b. based on accounting rate of return, which project is preferred?
The accounting rate of return (ARR) for Project 1 is -3.75% and Project 2 is -4.44%. Therefore, neither project is preferred based on the accounting rate of return.
a. The accounting rate of return (ARR) is calculated by dividing the average annual profit by the initial investment and expressing the result as a percentage.
For Project 1, the ARR is:
ARR = (Average annual profit) / (Initial investment)
Average annual profit = (Annual income - Depreciation) / 2
Depreciation = Initial investment / Useful life
Useful life = (Initial investment - Salvage value) / Annual depreciation
Annual depreciation = (Initial investment - Salvage value) / Useful life
Annual depreciation = 24,000 $
[tex]\displaystyle{\displaylines{($120,000 - $0) / 5 = 24,000}}[/tex]
Useful life = 5 years
[tex]\displaystyle{\displaylines{($120,000 - $0) / $24,000 = 5}}[/tex]
Average annual profit = -4,500 $
[tex]\displaystyle{\displaylines{($15,000 - $24,000) / 2 = -$4,500}}[/tex]
ARR = -3.75
[tex]\displaystyle{\displaylines{(-4,500) / 120,000 = -0.0375 = -3.75}}[/tex]
For Project 2, the ARR is:
Annual depreciation = 20,000 $
[tex]\displaystyle{\displaylines{($90,000 - $10,000) / 4 = $20,000}}[/tex]
Useful life = 4 years
[tex]\displaystyle{\displaylines{($90,000 - $10,000) / $20,000 = 4}}[/tex]
Average annual profit = 4,000
[tex]\displaystyle{\displaylines{($12,000 - $20,000) / 2 = -$4,000}}[/tex]
ARR = -4.44
[tex]\displaystyle{\displaylines{(-$4,000) / $90,000 = -0.0444 = -4.44}}[/tex]
b. Based on the accounting rate of return, neither project is preferred, since both have a negative ARR. The ARR is a measure of profitability that compares the average annual profit to the initial investment.
A positive ARR indicates that the project is profitable,
A negative ARR indicates that the project is not profitable.
In this case, both projects have a negative ARR, which means that they are not profitable.
Therefore, neither project is preferred based on the accounting rate of return.
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your car tire suddenly went bust and you must buy a new one. what problem complexity did you experience?
The most common risks include injuries from manual handling, which account for over half of all reported tyre-related accidents; injuries from tools, which account for a quarter of incidents, notably from hand tools like tyre levers.
What is the most typical tyre problem?
The most frequent types of damage include rips, cuts, collisions, bulges, cracks, and asymmetrical wear.
What impact does a worn-out tyre have?
Tire wear increases the likelihood that air pressure will be lost, which affects a car's fuel efficiency, braking, and steering. Low pressure is a significant contributor to tyre blowouts, which increase the risk of a vehicle losing control.
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typical causes of the fixed overhead spending (budget) variance include . multiple select question. differences between actual production volume and the volume level assumed when the fixed overhead rate was determined excessive spending on fixed overhead items dues to inadequate monitoring (cost controls) changes in operational efficiencies (that is, productivity changes) failure to anticipate or incorporate changes in spending for fixed overhead
The difference between the actual fixed overhead expense and the budgeted fixed overhead expense is known as the fixed overhead spending variance. An unfavorable variance indicates that real fixed overhead costs exceeded projections.
Since fixed overhead costs should be largely fixed (as their name suggests), the spending variation for fixed overhead should ideally not deviate significantly from the budget. A significant unfavorable variance, however, can result if the manufacturing process reaches a step cost trigger point where a brand-new expense must be incurred. Additionally, there may be some seasonality in fixed overhead costs, which could result in both positive and negative variances in specific months of the year but cancel each other out over the course of the entire year.
The level of production shouldn't affect this variance in any way besides the two previously mentioned instances.
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which type of salvage cover is lightweight and practical for indoor or outdoor use, but is prone to melting when used to cover hot objects?
Vinyl is lightweight and useful for both indoor and outdoor applications, although it is prone to melting when used to cover hot things. Thus, the correct answer is Vinyl.
What is Vinyl?Vinyl is a man-made synthetic material, not a naturally occurring substance. It is a form of plastic manufactured from ethylene (a component of crude oil) and chlorine (found in regular salt). When both components are treated, they mix to make Polyvinyl Chloride resin, also known as Vinyl.
Vinyl is the most versatile material in the world, used to produce anything from food wrap to vehicle body components. Vinyl is made up of two simple building blocks: chlorine, which is derived from common salt, and ethylene, which is derived from crude oil.
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from the early 1940's to until 1976, what city had a virtual monopoly on the gaming entertainment business?
From the early 1940's to until 1976, Las Vegas city had a virtual monopoly on the gaming entertainment business.
What was the name of the principal current gambling club?
The principal advanced gambling club, Il Ridotto, opened its entryways in Venice in 1638. History specialists think about this the world's most memorable club . Italian for "confidential room", Il Ridotto was opened to engage benefactors of the Venetian Festival. Requesting food and drink was required and there was a severe clothing regulation of caps and veils.
Is the biggest gaming income delivering city on the planet?
From that point forward, Macau has become referred to overall as the "Betting capital of the world" or "Monte Carlo of the East". Betting the travel industry is Macau's greatest wellspring of income, making up around half of the economy.
What was the principal gaming organization?
However Sanders Partners got the main patent for a computer game in 1964, gaming organization Magnavox bought the patent from them and started delivering computer game frameworks in the mid 1970s.
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This year Andrews achieved an ROE of 43.4%. Suppose the Board of Directors of Andrews mandates that management take measures to increase financial Leverage (=Assets/Equity) next year. Assuming Sales, Profits, and Assets remain the same next year, what effect would you expect this new Leverage policy will have on Andrew's ROE? Group of answer choices None of the aboveAndrew's ROE will remain the same Andrew's ROE will decrease. Andrew's ROE will increase.
What impact do you anticipate this new leverage policy will have on Andrews ROE, assuming Sales, Profits, and Assets stay the same in the upcoming year?
The ROE of Andrews will rise.
Increase in financial leverage will increase in assets is more as proportionate to Equity.
ROE = Net income / Shareholder equity
If assets are increased, also there will be an increase in net income, while equity being same.
What is ROE?
The return on equity is a metric used to determine how profitable a company is in relation to its equity. ROE can also be viewed as a return on assets less liabilities because shareholder's equity can be calculated by adding up all assets and deducting all liabilities.
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What would help a company reduce the risk of developing products for which there is little or no demand?.
Integrating R&D and marketing department would help a company reduce the risk of developing products for which there is little or no demand.
What kind of relationship does R&D and marketing have?Integration enables the sharing of current market data between the marketing and R&D departments. In order to develop products that are viable and increase market share while lowering the risk associated with launching a new product, R&D departments can consider the needs of their customers.
What part does R&D play in developing a marketing strategy and putting it into action?Research and development (R&D) is the process of creating new, better products and services that address the needs of your target market and customers. The likelihood of success is higher for companies with an R&D plan than without one.
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Suppose expenses for medicare and medicaid are rising rapidly. Which strategy could the federal government use to solve this situation?.
To lessen the impact of rising federal spending, lower spending on defense and education while raising income and payroll tax rates.
What does a government being federal mean?Federal refers to the fact that there is a federal government as well as 50 state governments. A "republic" is a system of governance in which the people are the ultimate decision-makers but choose representatives to carry out their will.
The federal government's authority?The authority to levy taxes, control commerce, establish a uniform naturalization law, establish federal courts (subordinate to the Supreme Court), build and maintain a military, and declare war are only a few of the enumerated powers.
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trey morgan is an employee who is paid monthly. for the month of january of the current year, he earned a total of $6,540. the federal insurance contributions act (fica) tax for social security is 6.2% of the first $137.700 earned each calendar year, and the federal insurance contributions act (fica) tax rate for medicare is 1.45% of all earnings for both the employee and the employer. the amount of federal income tax withheld from his earnings was $880.70. what is the total amount of taxes withheld from the trey’s earnings?
The total amount of taxes withheld from the trey’s earnings is $3,510.14.
Trey Morgan's net pay will be amount remaining after deducting the FICA taxes for Social security and Medicare and the Federal income tax withheld.
The net pay is therefore:
= 4,538 - (4,538 * 6.2%) - (4,538 * 1.45%) - 680.70
= 4,538 - 281.356 - 65.801 - 680.70
= $3,510.14
Federal income tax is the income tax paid to the federal government. Income tax is determined by a schedule or table. The more you earn, the more you will end up paying. Federal income tax rates remain unchanged for the 2022 tax year at 10%, 12%, 22%, 24%, 32%, 35%, and 37%. However, the income limits for each class are adjusted slightly each year for inflation. Read on to learn more about the state income tax brackets for the 2022 tax year. Payroll taxes, which fund Social Security, Medicare, and unemployment benefits, are the second largest source of federal revenue, accounting for about one-third of total annual revenue.
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An account earned interest of 3% per year. The beginning balance was $150. The equation t=log1. 03e150 represents the situation, where t is the time in years and e is the ending balance. If the account was open for 7 years, which equation could be used to find the ending balance?.
$190 is the remaining balance.
What is the name for earned interest?The compensation a bank or other financial institution gives a depositor for keeping their money in a savings account is known as interest. By using the money placed to lend money to other customers, a bank effectively borrows money from its depositors.
You can't use accumulated interest until it is paid at the end of the period; it rises along with your interest earnings.
The details are as follows:
Interest rate = 3% annually.
Initial balance= $150
Equation: (E / 150) t = log1.03
Calculate E as 8 = log1.03 (E / 150).
E / 150 = (1.03) (1.03)
⁸\sE = (1.03)⁸ (150)\sE = 190 $
As a result, the final balance is $190.
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A company can increase its return on investment (ROI) by ______.
a. borrowing additional funds
b. increasing sales
c. reducing operating expenses
d. increasing operating assets
The return on investment (ROI) of a business can be increased by
b. boosting sales
c. lowering operating costs
What is the purpose of return on investment, or ROI?ROI, often known as return on investment, is a number that investors can use to evaluate their investments and compare how well one investment has performed to another. Sometimes a ROI calculation is supplemented with additional techniques when developing a business case for a particular project.
What changes as ROI rises in relation to the investment?A higher ROI percentage indicates that a project's investment returns are larger than its costs. As a result, 40% ROI is calculated as 0.4 x 100. Ben is receiving a 40% return on his investment inside the project as a result of capital gains, which is a significant ROI percentage.
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information on the statement of cash flows helps users answer all of the following questions except: multiple choice question. why was there a change in the cash balance? why did the company invest in long-term assets? where does a company spend its cash? how does a company obtain its cash?
Information on the statement of cash flows helps users answer all of the following questions except b) why did the company invest in long-term assets?
In the field of business, information of cash flow can be described as the total revenue that you are spending or saving. Cash flows show the ways how you have spent your revenue.
It shows how changes were made in your cash balance based on the revenue that you brought in or used. It shows all the places where the money by a person, a company or an organization was spent. It also shows the place from where the revenue was obtained.
However, through cashflows, we cannot determine the reasons for a company in a long-term investment.
Although a part of your question is missing, you might be referring to this question:
information on the statement of cash flows helps users answer all of the following questions except: multiple choice question.
a) why was there a change in the cash balance?
b) why did the company invest in long-term assets?
c) where does a company spend its cash?
d) how does a company obtain its cash?
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maxim has already spent $28,300 to manufacture a hamster food product called green health. maxim currently has 10,000 bags of green health on hand that can be sold for $90,640. alternatively, maxim can process it further into a different product, premium green, at an additional cost of $6,050. if maxim processes further, the premium green can be sold for $98,700. the incremental income to process further is:
The incremental income to process further is:
Incremental revenue=$8000(98000-90000)
Incremental costs=$6000
Incremental benifit=$2000
In accounting, revenue is the overall amount of earnings generated by the sale of products and services related to the number one operations of the business. [1] commercial sales will also be called income or as turnover. a few companies get hold of revenue from hobby, royalties, or different charges.[2] "sales" may additionally talk over with profits in general, or it can refer to the quantity, in a monetary unit, earned at some point of a time frame, as in "ultimate yr, business enterprise X had sales of $forty two million".
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if you expect a financial asset to increase in value you are considered bullish on that asset. which of the following statements are bullish positions? i. buying a call ii. buying a put iii. selling a call iv. selling a put
The bullish statements are i, iii and iv.
Buying or holding long positions is a bullish move. It basically means believing that the value of an asset will increase. A trader who is "bullish on gold," for instance, is one who anticipates an increase in the price of gold.
A bull can stand in for an idea or deed. A bullish person might invest in the assets they are bullish on. Alternatively, they might just believe that the price would increase but have elected not to make any trades in light of that belief.
Bullish positions can be very specific assessments of a single stock or they can be general assessments of the market.
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What kind of claim is used for billing provider fee-for-service claims to commercial health insurance companies?.
Professional paper declare shape (CMS-1500) is the correct answer here.
Which is common price for service fitness insurance plan that covers a element of services?Original Medicare is the best-known example of an FFS plan. At your healthcare provider's office, you pay the full fee for each service till you've reached your every year deductible. (One exception: Wellness visits are free.) After that, the provider payments Medicare for each person service.
What are three foremost sorts of healthcare offerings billing methods?The three fundamental fee-for-service techniques of compensation are cost based, cost based, and prospective payment. Under cost-based reimbursement, the payer concurs to reimburse the company for the charges incurred in presenting services to the insured population.
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https://brainly.com/question/18560729#SPJ4What are the benefits of recombinant dna technology that are not possible by traditional breeding programs?.
Recombinant DNA technology offers advantages over conventional breeding methods that cross species barriers and extend beyond domains.
Why do you use the word "domain"?In the context of network, the term "domain" can refer to both the structure of the internet and the organization of a company's network resources. A domain is typically a sphere of information or an area under one's control.
what is An example of a domain ?The physical address 198.102. 434.8, for instance, might be associated with the domain name example.com. and are two further instances of domain names. Web addresses are significantly simpler to remember and type when they are identified by a domain name rather than a numeric IP address.
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Black company has net credit sales of $500,000, an asset turnover ratio of 3, an inventory turnover ratio of 5, and a receivables turnover ratio of 6. What is the average collection period?.
Black company has net credit sales of $500,000, an asset turnover ratio of 3, an inventory turnover ratio of 5, and a receivables turnover ratio of 6. the average collection period is 73 days
Collection period can also be calculated as =365 days/average receiving turnover ration=365/5=73 days. The average collection period is the length of time it takes for a company to obtain accounts receivable payments due from its clients (AR). To make sure they have enough cash on hand to cover their financial responsibilities, businesses employ the average collection period. For businesses that largely rely on receivables for their cash flows, the average collection period is a crucial number since it shows how well a company manages its accounts receivable. The amount of time it takes for a business to collect its accounts receivables is referred to as the average collection period.
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Progress in meeting air quality standards has been slow because ___________________.
the expected return on the market is 18%. the expected return on a stock with a beta of 1.2 is 20%. what is the risk-free rate?
If the expected return on the market is 18%, the expected return on a stock with a beta of 1.2 is 20%, then the risk-free rate is 8%.
Why is stock used?A stock, usually referred to as equity, is a type of investment that denotes ownership in a portion of the issuing company. Shares, also known as units of stock, entitle its owners to a share of the company's assets and income in proportion to the number of shares they possess.
How are stocks and shares different from one another?The term "stock" refers to the holder's interest in one or more corporations. A single share of ownership in a firm is referred to as a "share" in contrast. For instance, if X has stock investments, X may have a portfolio of shares from various companies.
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in many parts of the world, sales of unauthorized videos of hollywood movies cost the movie studios billions of dollars. when illegal copies of movies are made, what form of intellectual property has been wrongly appropriated?
In many parts of the world, sales of unauthorized videos of Hollywood movies cost the movie studios billions of dollars. When illegal copies of movies are made, Copyright is a form of intellectual property that has been appropriated.
What is Copyright?
The legal right of the owner of intellectual property is referred to as copyright. The right to copy is the simplest definition of copyright. The only people who have the sole right to reproduce a work are the original authors of that work and anyone to whom they grant permission.
For a specific period of time after which the copyrighted object enters the public domain, copyright law grants original material producers the sole right to continue using and duplicating their work. A work must be in physical form in order for copyright laws to protect it.
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behavior in which a dominant firm's pricing strategy is followed by other firms in the industry is called:
Behavior in which a dominant firm's pricing strategy is followed by other firms in the industry is called: price leadership.
The approach is a general plan to acquire one or more long-term or usual desires below situations of uncertainty. A method refers to a corporation's long-time period goals and how it plans to reach them. In other phrases, it shows the course to obtain the described imaginatively and prescient. A tactic refers to the particular actions taken to reach the set desires in line with the strategy.
A method describes how the ends (dreams) might be executed with the aid of the method (assets). the strategy may be supposed or can end up as a pattern of pastime as the business enterprise adapts to its environment or competes. It entails sports such as strategic making plans and strategic thinking.
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the income statement approach for estimating bad debts focuses on multiple choice question. current year's credit sales. average accounts receivable. total sales. end-of-year accounts receivable.
The income statement approach to estimate bad debts uses the percentage of current year's credit sales.
Why Bad Debt Estimation Matters?Bad debt is a type of accounts receivable of an organization that can no longer be collected from a customer because the customer is unable to pay the amount owed by the organization.Reporting bad debt increases your overall costs and reduces your net income. Therefore, the amount of bad debt a company reports will ultimately change the amount of tax it pays during a given tax period.Bad debts are generally classified as: selling, general and administrative expenses and included in the income statement.Where do bad debts written off appear on the income statement?Bad debt write-offs add allowances for bad debt accounts to the balance sheet accounts. This is then deducted from accounts receivable on the current balance sheet. The results are displayed as net receivables.
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the process of an economy adjusting from a recession back to potential gdp in the long run without any government intervention is known as group of answer choices fiscal policy. an automatic mechanism. monetary policy.
The process of an economy adjusting from a recession back to potential GDP in the long run without any government intervention is known as fiscal policy.
The two essential examples of expansionary fiscal policy are tax cuts and multiplied government spending. both of those guidelines are intended to increase the mixture call for while contributing to deficits or drawing down budget surpluses.
Financial coverage is the manner by using which the government adjusts its spending and sales to persuade the broader financial system. by means of adjusting its stage of spending and tax sales, the authorities can affect the economic system by using both growing or lowering monetary interest inside the brief time period.
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a small business uses display ads to help deliver relevant advertising to people browsing the web. which statement is true about where display ads connects with these valuable audiences?
Through partnerships with hundreds of other websites and social media platforms, the Display Ads reach viewers.
What is an display ad?Online ads known as "display ads" include language, visuals, and a call to actions (CTA) that directs the user to a new website. Display ads are frequently seen at a website's top, sides, or on occasion even right in the middle of the content.
Uses for display advertisementsAdvertising sales is a technique for luring a website's, social media platform's, or other digital medium's audience to take a particular action. These usually include text-based, image-based, or video advertisements that prompt readers to visit landing sites and take action.
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in this decision point activity, you began to explore game theory: specifically, how your outcomes are dependent not just on your own choices, but also on the reactions of competitors. use what you learned from this decision point, and information from the chapter to answer the following question. suppose nike and adidas are considering whether to develop new advertising campaigns. for each pair of strategies, the blue triangle shows nike's payoff and the yellow triangle shows adidas's payoff, in billions. use this information to complete the sentences.
The ideal result for Nike would be for Adidas to decide against advertising. If Adidas decides not to promote, Nike's decision to not advertise will have the greatest impact on their business.
What is a suitable sentence for the result?How to effectively use the word "outcome" Only conclusion we could accept was this one. The result tonight should be more to your taste. The only people who can affect how this turns out are us.
What does a bad result mean?Deterioration and failed to uphold or progress are examples of negative consequences. Failed to adhere with a requirement constitutes a defect even if there is no obvious negative effect from the deficient activity. Many standards don't focus on results.
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find the present value of an annuity of $8000 paid at the end of each 6-month period for 2 years if the interest rate is 7%, compounded semiannually. (round your answer to the nearest cent.)
Compound interest is the interest on savings computed on both the initial principle and the interest earned over time.
Calculate CIWe apply the formula
[tex]A=P(\frac{200+r}{200})^{4}\\ A=8000(\frac{207}{200})^{4} \\ A= 18360.36801[/tex]
Compounding accelerates the growth of money, and the bigger the number of compounding periods, the greater the compound interest. Compound interest is interest based on the original principle plus all prior periods' accrued interest. The power of compound interest is the ability to generate "interest on interest." Interest can be added at any time, from continuously to daily to yearly.
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what overall assessment would you provide the senior loan officer regarding ctek’s ability to repay a loan if granted? group of answer choicesrisk ratios are providing conflicting signals and rates of return are declining.risk is increasing while profitability is declining.profitability is increasing, but so is the risk of default.
Profitability is increasing, but so is the risk of default is the overall assessment would you provide the senior loan officer regarding ctek’s ability to repay a loan if granted.
What exactly is guarantor risk for loan?The greatest danger of becoming a loan guarantor is the risk of loan payback. Yes, if the principal borrower fails to return the loan, the loan guarantor is considered a defaulter and must refund the debt on time. The loan provider may request that the loan guarantor return the outstanding loan on schedule. Adjustable-rate mortgages (ARMs) are a particularly risky choice for borrowers in less-than-ideal financial situations due to their fluctuating interest rates. In reality, in the wrong conditions, some fixed-rate mortgages might be troublesome. If your guarantor fails to pay, your landlord may sue them. Your landlord may wish to evaluate your guarantor's ability to pay rent in the same way that they have investigated your ability to pay rent.
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