Increased leverage allows companies to control more assets and increase their Return on Equity (ROE). What's bad about leverage? It reduces productivity, which can decrease overall ROE. Leverage-based profits are not cash-based and are ignored by finance. Leverage multiplies losses, too, as it increases a company's risk. There is nothing bad about leverage, using other people's money is a good way to increase the value of the company.

Answers

Answer 1
While it is true that increased leverage can allow companies to control more assets and potentially increase their Return on Equity (ROE), there are also potential downsides to leveraging. One potential downside is that leverage increases the risk of significant losses, as any losses incurred are multiplied by the leverage factor. Additionally, using leverage can decrease overall productivity, which in turn can result in a decrease in overall ROE. It is also worth noting that while leverage-based profits may increase the value of a company, they are not necessarily cash-based and may not be sustainable over the long term. Ultimately, the decision to use leverage should be carefully considered and based on a thorough analysis of the potential benefits and drawbacks.
Answer 2

Leverage has potential downsides as it increases a company's risk and can lead to negative consequences.

While leverage can provide companies with the opportunity to control more assets and increase their Return on Equity (ROE), it also carries risks and disadvantages. One of the drawbacks of leverage is that it multiplies losses. When a company takes on debt or uses leverage to finance its operations or investments, it amplifies the impact of any losses or downturns in the business. If the company experiences financial difficulties or faces a decline in its income, the burden of debt can become overwhelming, leading to financial distress or even bankruptcy.

Furthermore, leverage can reduce productivity and decrease the overall Return on Equity (ROE) of a company. As companies take on more debt, they have to allocate a portion of their earnings towards interest payments and debt servicing, which can limit their ability to reinvest in productive assets, research and development, or other growth initiatives. This can result in a lower ROE as the company's profitability may be compromised by higher interest expenses and reduced investments in value-generating activities.

While leverage can offer advantages in terms of asset control and potential ROE enhancement, it comes with risks and drawbacks. The increased risk of losses, reduced productivity, and potential financial distress highlight the downsides of excessive leverage. Therefore, it is important for companies to carefully manage and assess the risks associated with leverage to maintain a healthy financial position.

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Related Questions

Which of these careers include supervising others?


welder
welder

project manager
project manager

foreman
foreman

forklift operator

Answers

The careers  that needed supervision of others are  welder and foreman. Thus option (a) and (b) are correct.

Who is a welder?

A welder is a skilled tradesperson who specializes in joining pieces of metal or thermoplastics together using various welding techniques.

Welders must have a good understanding of welding techniques and materials, as well as safety practices and regulations. They use a variety of tools and equipment such as welding machines, cutting tools.

The  welder and foreman are the professions that need supervision of others. Therefore, option (a) and (b) are correct.

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What is the structure of Public corporation

Answers

Public corporate structures are managed by a board of directors. The members of the board are from all walks of industry and commerce. The chairmen of these corporations are appointed by the government. The entire capital is financed by the government.

Jennifer Rodriguez plans to attend graduate school in 5 years. She thinks that she will need a total of $32,000 to pay for school, and she wants to save money each month to reach her goal. What type of computation should she use?

Answers

Answer:

"Future value of an annuity" is the appropriate solution.

Explanation:

The future amount of an annuity seems to be the interest or price of a collection of additional payments throughout the aggregate beyond a certain point of time, considering a better rate of interest, or dividend yield. The higher the demand, the greater the potential quality of the investment account.

As you move from left to right, the aggregate demand curve _____. slopes upward slopes downward may slope upward or downward

Answers

As you move from left to right, the aggregate demand curve slopes downward.

The aggregate demand curve shows the relationship between the overall level of economic activity and the overall price level in an economy.

When the economy is operating at a high level of economic activity, firms are producing and selling more goods and services, and consumers are buying more goods and services. As a result, the overall price level tends to be higher.

As the economy moves to the right along the aggregate demand curve, the overall level of economic activity decreases, and the overall price level tends to decrease as well.

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can someone please help me with this question?​

can someone please help me with this question?

Answers

Answer:

We can first assess the effects of each of the transactions on the balance cheat.

the a) transaction will reduce cash by $500, and reduce creditors by the same amount.

the b) transaction will increase cash by $300, and reduce debtors by the same amount.

the c) transaction will reduce cash by $1,000, and reduce the Loan from L. Stennett by the same amount.

Now we can list this effects.

Cash is reduced by $500 + $1,500 and increased by $300. The total net effect on cash is then a $1,200 decrease ($1,500 decrease + $300 increase).

All the other accounts have only one reduction, so we simply substract that figure from the balance sheet on the picture to obtain our new figures.

Now we can write the new balance sheet

Balance Sheet as at 10 April 2007

Assets

Buildings                $6,000

Motor Vehicle        $4,000

Stock of Goods      $2,000

Debtors                  $2,500 (-$300)

Cash at bank         $2,000 (-$1,200)

Total Assets           $16,500

Liabilities

Loan L. Stennet      $1,000 (-$1,000)

Creditors                 $1,100 (-$500)

Total Liabilities        $2,100

Capital                     $14,400

By the accounting equation, Capital + Liabilities = Assets, we see that it holds true: $14,400 + $2,100 = $16,500, so are figures are right.

what documents are used in the buying of goods and services​

Answers

Answer:

trans tax

Explanation:trans tax

Select all of the benefits to buying a home.

Select all of the benefits to buying a home.

Answers

Answer:

The value of the home generally increases over time

The quality of your home increases

Once the mortgage is paid in full you own the home

You can make improvements in the place

which of the following below is not one of porter's five forces?

Answers

Answer:

Buyer power

Supplier power

Rivalry among existing competitors

Prices of major inputs

Explanation:

High when buyers have few choices of whom to buy from and low when their choices are many

Optimization of Shareholder wealth is not one of porter's five forces.

What is porter's five forces?

Porter's Five Forces Framework is a method for analyzing a company's competitive operating environment. It derives five forces from industrial organization economics that determine the competitive intensity and, thus, the attractiveness of an industry in terms of profitability.

Porter's Five Forces is a model that identifies and analyzes five competitive elements that impact every industry and aids in determining the strengths and weaknesses of that industry. The Five Forces analysis is commonly used to determine business strategy by identifying the structure of an industry.

A framework for today ’s dynamic business environment is Porter's Five Forces.

Porter's Five Forces is a widely used framework for assessing the competitive forces that influence a wide range of business sectors.

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Suppose you are a manager at an advertising agency who is eager to utilize Covey's advice about delegation. Today, you need to work on a



presentation for a potential new client. This requires delegating a routine status report about an ongoing advertising campaign to Joanne. By



delegating the status report to Joanne, she has



for its completion.

Answers

Available Option Are:

Juanita must have authority over the resources and personnel needed to complete the status report You should help Juanita with the status report, to the extent you have timeJuanita will have full responsibility for the assignment Juanita will be held accountable for the results of the assignment.

Answer:

Correct Options are 1, 3 and 4.

Explanation:

She also has authority to access the legitimate resources to complete the status report in due time. Hence Option 1 is correct.

However, after delegating the assignment to Joanne. I am not responsible to help her complete the task. I may have responsibility of reviewing the status report but I am not responsible for helping her to complete the status report whenever I am free. Hence Option 2 is incorrect.

The reason is that after delegating the task to Juanita with authority and responsibility to complete the assigned task, she is now responsible to complete the status report as the task is assigned to her. Hence option 3 is correct

If Juanita's status report was not difference making or in simple words the purpose of the status report was not fulfilled then she will accountable for the outcome. Hence Option 4 is correct.

The increase in worth of a product or service to a consumer as a result of advertising efforts is known as __________.

Answers

The increase in worth of a product or service to a consumer as a result of advertising efforts is known as advertising elasticity of demand.

A market's susceptibility to changes in advertising saturation is gauged by the advertising elasticity of demand (AED). Advertising elasticity gauges how well a campaign does at bringing in new customers. It is computed by subtracting the percentage change in advertising spending from the percentage change in quantity required. A positive advertising elasticity means that the demand for the advertised good or services increases as advertising spend increases. For instance, a commercial for a very cheap product, like a cheeseburger, can cause a sudden increase in sales. On the other hand, because luxury goods are expensive and less likely to be bought on impulse, advertising for items like pricey jewelry or cars may not yield results for some time.

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i have a few questions about finance. PLease answer correctly and completely! thx

Which product is an example of perfect competition?
A.
food grains where products are homogeneous
B.
computers, where there are many competitors with slightly differentiated products
C.
aerated cold drinks, where there are two competitors
D.
bicycles, where buyers and sellers have some control over the price
E.
gold where there is only one seller

The database of Aster Corp. was hacke.d and confidential data was leaked to its competitors. This resulted in a huge financial loss and a loss of goodwill for the company. What is this business risk known as?
A.
operational risk
B.
exchange risk
C.
political risk
D.
expansion risk
E.
survival risk

i have a few questions about finance. PLease answer correctly and completely! thxWhich product is an
i have a few questions about finance. PLease answer correctly and completely! thxWhich product is an
i have a few questions about finance. PLease answer correctly and completely! thxWhich product is an
i have a few questions about finance. PLease answer correctly and completely! thxWhich product is an
i have a few questions about finance. PLease answer correctly and completely! thxWhich product is an

Answers

Answer 1:

B is the answer.

Computers where there are many competitors with slightly differentiated products.

Explanation:

A market is characterized as a Perfect Competition where there are many buyers, many sellers and the products are either homogenous or slightly differentiated. There is also perfect knowledge about all the products and the nonexistence of monopoly. That is, no player in the market has leverage over which they can manipulate prices in their favor.

Answer 2:

A is the correct answer.

Operational Risk.

Explanation:

When there is the possibility for a loss arising from a dysfunctional internal process(es), inefficient employee(s), or even from external events, with a link to the internal dynamics of a company, the business is said to be exposed to Operational Risks.

Answer 3:

When there is an increase in interest rate, the following takes place:

Businesses shy way from borrowing from the bank(due to the loss of leverage or increased cost of borrowing when they do) Production Cost increasesWhen production costs increase prices of finished goods increasesthe above leads to a decrease in demand for finished goodsand ultimately Consumer spending goes down

Cheers

A popular fried chicken franchise opened their operations in China. Their Beijing outlet translated the tagline, Finger-lickin' good" to "Eat your fingers off." Using online research, briefly summarize five other examples of poor cultural language and cultural awareness in advertising.

Answers

Answer:

(Answers may vary.)

Sometimes marketers try to convince consumers overseas that their product goes beyond traditional cultural barriers by simply translating the original taglines or ignoring cultural barriers. This is where they go wrong. Here are some examples:

A company that made baby foods entered the market in Africa where they used their original packaging of containers with baby pictures on them. In Africa, most companies follow the tradition of putting picture of contents on the packaging. So, putting the picture of a baby on the packaging proved to be a bad brand strategy.

A famous cereal brand had to rename their product name in Sweden after it was translated into the local language as “burned farmer.”

A well-known bank with an ad campaign that read, "Assume Nothing," had to reconsider their campaign when they launched their operations overseas. They had to change their tagline because the tagline translated to "Do Nothing" in many countries.

An automobile company tried to sell cars in Mexico using a tagline that roughly translated to “the car doesn’t move”.

A beverage company used characters in Chinese that sounded like the brand name but read as “Bite the wax tadpole.” They later used a different tagline, this time being more careful.

Explanation:

Plato

the first person that answers ill give u 50 brainlist points, brainlist to, stars, and a heart

Answers

Hi and I am cool
And thx

identify three risks, then describe mitigation measures you would take to prevent each risk from occurring (or lessening their impact). use at least 200 words for each risk

Answers

three common risks and the mitigation measures that can be taken to prevent them from occurring or lessen their impact.1. Cybersecurity 2.Financial Risks 3.Project Risks

Risk management is crucial to avoid negative consequences that may result from a particular hazard. This process involves identifying and analyzing potential risks and implementing mitigation measures to minimize or eliminate their impact. In this post, we will discuss three common risks and the mitigation measures that can be taken to prevent them from occurring or lessen their impact.1. Cybersecurity RisksThe advancement of technology has led to an increase in the number of cyber-attacks worldwide. Cybersecurity risks can range from minor issues such as phishing scams to severe cases of data breaches. The mitigation measures that can be taken to prevent these risks from occurring are:Regular Backups: Ensure that you back up your files regularly to avoid data loss in the event of an attack. This can be done manually or through automated backup tools.Network Security: Implement a strong firewall and anti-virus software to protect your network from malicious attacks. Limit employee access to sensitive information and use strong passwords.Monitoring: Regularly monitor your network for suspicious activity and set up alerts to notify you of potential threats.

2. Financial RisksFinancial risks are those that affect a company's finances. This may include fluctuations in exchange rates, interest rates, or commodity prices. The mitigation measures that can be taken to prevent these risks from occurring are:Cash Flow Management: Monitor your company's cash flow regularly to ensure that it is stable. This can be done by reviewing your financial statements regularly, creating a budget, and reducing expenses where possible.Hedging: Hedge against financial risks by investing in instruments that help to protect your business against currency fluctuations. This can include options, futures, and other derivatives. Insurance: Take out insurance policies that cover potential financial risks such as theft, fire, or other damage. This will help to mitigate the impact of such events on your business.

3. Project RisksProject risks are those that occur during the course of a project. These risks can be due to factors such as poor planning, inadequate resources, or unforeseen circumstances. The mitigation measures that can be taken to prevent these risks from occurring are:Risk Management: Conduct a thorough risk assessment at the beginning of the project to identify potential risks. Develop a risk management plan that outlines how to mitigate and manage these risks.Project Planning: Develop a detailed project plan that outlines the tasks, resources, and timelines for each phase of the project. This will help to ensure that the project is completed on time and within budget.Stakeholder Management: Engage with stakeholders to ensure that their needs are met throughout the project. Keep them informed of any issues that arise and involve them in the decision-making process. ConclusionRisks are inevitable in any business or project. However, by identifying and analyzing potential risks, businesses can develop mitigation measures to lessen their impact. Regularly monitoring and updating your risk management plan is essential to ensure that your business is protected against potential risks.

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ABC Company issued a bond with face value for $1000, paid annual 10% coupon and 3 years to maturity, what is the value of ABC bonds today if the required rate of return is 12%.

Answers

Answer:

The value of Bond = $951.963

Explanation:

The value of the bond is the present value(PV) of the future cash receipts expected from the bond. The value is equal to present values of interest payment plus the redemption value (RV) discounted at the yield rate

Value of Bond = PV of interest + PV of RV

Th e PV of interest payment

A ×(1- (1+r)^(-n))/r

Interest payment = 10%× 1000 = 100

PV = 100× (1- 1.12^(-3))/0.1 =  240.183126

PV of redemption value

PV = RV× (1+r)^(-n)

PV = 1000× 1.12^(-3) = 711.7802

The value of bond =   240.18 +  711.78= 951.963

The value of Bond = $951.963

What best describes the main purpose of a budget

Answers

Explanation:

A budget helps create financial stability. By tracking expenses and following a plan, a budget makes it easier to pay bills on time, build an emergency fund, and save for major expenses such as a car or home. Overall, a budget puts a person on stronger financial footing for both the day-to-day and the long term.

Why is it important for me to conduct myself in an appropriate manner throughout recruitment and beyond?.

Answers

It is important for me to conduct myself in an appropriate manner throughout recruitment and beyond to leave a good impression on others and to perform our jobs in a great way.

What is an appropriate manner?

Right or suitable; fitting.

Rare particular; own.

What is an example of a manner?

An example of manner is the way in which someone performs her job.

A way or method in which something is done or happens; mode or fashion of procedure.

Characteristic mode of acting, conducting, carrying one's self; bearing; habitual style. His natural manner makes him seem like the boss.

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What is the purpose of writing a topic sentence?
A. To summarize the meaning of the bottom-line statement
B. To put the paragraphs in the proper order
C. To summarize the main point of the paragraph
D. To make the headings more persuasive

Answers

C- To summarize the main point of the paragraph

Answer:

C.

Explanation: APEX

managers with a low tolerance for ambiguity and an orientation toward task and technical concerns when making decisions have a behavioral decision-making style. group startstrue or falsetrue, unselectedfalse, unselected

Answers

It is true. With a low tolerance for ambiguity, managers who are task- and technical-oriented in decision-making have a behavior-based decision-making style.

They base their decision-making on their own knowledge, experience, and rationale rather than looking to others for information.

Orientation is related to tasks and subjects. Individuals characterized by this style are pragmatic, dictatorial, strict, impersonal, and have a strong desire for power and control.

Analytical managers are characterized by a much higher tolerance for ambiguity and a tendency to overanalyze situations. People with this style prefer to consider more information and alternatives than those who follow the directive style.

Analytical managers are characterized by a much higher tolerance for ambiguity and a tendency to overanalyze situations. Such people are cautious decision makers, slow to make decisions, but adapt well to new and uncertain situations. 

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The likelihood that political forces will cause drastic changes in a country's business environment and adversely affect the potential for a company to make a profit is called a _____ risk

Answers

The likelihood that political forces will cause drastic changes in a country's business environment and adversely affect the potential for a company to make a profit is called a political risk

Political risk is the risk that an investment's returns will suffer as a result of a country's political changes or instability. Changes in legislative bodies, government, other foreign policymakers, or military control could all result in investment return volatility. Political risk, also recognized as "geopolitical risk," becomes a greater factor as the investment time horizon lengthens. They are categorized as a type of jurisdiction risk.

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bro r u kidding me smh

bro r u kidding me smh
bro r u kidding me smh

Answers

Answer: THATS SO F-U-C-K-I-N-G STUP.ID!!!!!!!!! HOW HARD IS IT FOR THEM TO GIVE YOU MORE TIME!!!!!!!!!

Explanation:

Answer:

But from the screenshot it seems like you spent alot of time on ur work, and they still give you an F and D?!  That's literally messed up. ur teachers should understand :/

Explain why achieving superior quality is so important and
understand the challenges facing by managers and organizations that
seek to implement total quality management.

Answers

Achieving superior quality is essential because it has several benefits to an organization. These benefits include gaining a competitive advantage, retaining loyal customers, reducing costs, increasing efficiency, and improving customer satisfaction.

There are challenges that managers and organizations face in implementing total quality management.

The primary challenge is resistance to change, which can arise from a lack of awareness of the benefits of total quality management or fear of the unknown. Managers and leaders must convince employees of the benefits of total quality management and create an environment that encourages learning, experimentation, and risk-taking.

Another challenge is maintaining consistency in quality management practices across the organization. Managers must ensure that quality management practices are applied consistently across all areas of the organization

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evaluate joint initiative on priority skills acuisitions (jipsa)​

Answers

identify solutions to major skills shortages constraining

the relative bargaining power of suppliers is most likely low when

Answers

When there are many of suppliers serving the business in a cutthroat environment and supply outpaces demand, it is likely that suppliers' relative negotiating strength is low.

By supplier, what do you mean?

A supplier is a person, business, or other entity that offers clients products or equipment for sale.

Suppliers offer the raw ingredients a business needs to create its own products and/or services. The materials' transportation is handled by suppliers. Suppliers give a business the services it needs to deliver products and services to customers.

A supplier in the manufacturing industry either purchases goods directly from the manufacturer or is that manufacturer. Vendors often sell real goods to end users and source their supplies from those manufacturers.

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16-26 Joint-cost allocation, process further. Sinclair Oil & Gas, a large energy conglomerate, jointly processes purchased hydrocarbons to generate three nonsalable intermediate products: ICR8, ING4, and XGE3. These intermediate products are further processed separately to produce crude oil, natural gas liquids (NGL), and natural gas (measured in liquid equivalents). An overview of the process and results for August 2017 are shown here. (Note: The numbers are small to keep the focus on key concepts.) A federal law that has recently been passed taxes crude oil at 30% of operating income. No new tax is to be paid on natural gas liquids or natural gas. Starting August 2017, Sinclair Oil & Gas must report a separate product-line income statement for crude oil. One challenge facing Sinclair Oil & Gas is how to allocate the joint cost of producing the three separate salable outputs. Assume no beginning or ending inventory. Required: 1. Allocate the August 2017 joint cost among the three products using the following: a. Physical measure method b. NRV method 2. Show the operating income for each product using the methods in requirement 1. 3. Discuss the pros and cons of the two methods to Sinclair Oil & Gas for making decisions about product emphasis (pricing, sell-or-process-further decisions, and so on). 4. Draft a letter to the taxation authorities on behalf of Sinclair Oil & Gas that justifies the joint-cost-allocation method you recommend Sinclair use.

Answers

. We are positive that this method is not detrimental to decision-making processes and would be an asset to our company in allocating the joint costs of producing the three separate salable outputs.

We appreciate your time and attention to this matter and look forward to hearing back from you shortly.Respectfully,Sinclair Oil & Gas16-26 Joint-cost allocation, process further

: 1. Physical measure methodXGE3:ICR8:ING4

:Total:Joint costAllocation:Physical measure method: $67500$45000$67500$180000(90/150) × $180000 =$108000 (60/150) × $180000 =$72000 (90/150) × $180000 =$108000 $2880002. NRV methodXGE3:ICR8:ING

4:Total:Joint costAllocation:NRV Method:$64500$43000$64500$172500((($36.75 + $20.00) / $70.00) × $172500) =$86437.50((($24.50 + $13.50) / $70.00) × $172500) =$46162.50((($36.75 + $20.25) / $70.00) × $172500) =$96900.00$229500Operating income:ICR8:ING4:XGE3:

Total:Physical measure method: $36000($45000-$108000)$0($67500-$108000)$67500($67500-$108000) $36000 -$45000 -$36000 $9000 -$54000NRV method: $26612.50($43000-$46162.50)$0($86437.50-$64500)$21937.50($64500-$42562.50) $26612.50 -$43000 -$21937.50 -$38325.00Pros and Cons of the two methods to Sinclair Oil & Gas for making decisions about product emphasis (pricing, sell-or-process-further decisions, etc.):Method Pros ConsPhysical MeasureIt is easier to apply and comprehend.When there is a significant disparity in revenue, this method can produce inaccurate outcomes.It is used to distribute joint costs based on the physical qualities of the products generated.

There are no disadvantages to this approach in terms of decision-making.NRV MethodNRV is a more reliable method since it is based on the estimated net realizable value of a commodity.A single product's net realizable value might be challenging to estimate.The NRV approach assists in identifying the product's usefulness to the company.No method disadvantages in decision-making.Draft a letter to the taxation authorities on behalf of Sinclair Oil & Gas that justifies the joint-cost-allocation method you recommend Sinclair use.

Dear Taxation Authorities,I am writing on behalf of Sinclair Oil & Gas, who recently encountered issues regarding the joint cost of producing three separate salable outputs. We would like to report a separate product-line income statement for crude oil, but we are unsure how to allocate the joint cost. We appreciate the recent federal law that taxes crude oil at 30% of operating income, and no new tax is to be paid on natural gas liquids or natural gas.To that end, we recommend the physical measure method of joint cost allocation because it is easy to apply and comprehend. Although it can produce incorrect outcomes when there is a significant revenue disparity, this method can be used to distribute joint costs based on the physical qualities of the products generated

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why do cops always search me for no reason

Answers

Answer:

Police officers can legally search an area and seize evidence if it is clearly visible

Answer: They can legally search you and they may find you suspicious of something

Explanation:

What is the basis of the law of demand?
Group of answer choices

Self-interested behavior

Marginal utility

Utility curves

Market timing

Answers

market timing

Explanation:

because that way u wont miss customers

Calculate the net pay using the following information:
Gross pay = $700
FICA tax = $55.90
Federal taxes = $85
State taxes = $20.44
Local taxes = $0
Health insurance =$47.50
Net pay = ?

Answers

Answer:

$ 491.1

Explanation:

Net pay is the take home pay salary. it is calculated by subtracting  all deduction from the gross pay

Total deductions =$55.90 +$85 + $20.44 + $0, +$47.59

Total deductions = 208.84

Net pay = Total sales - taxes

=$700 - $208.84

=$ 491.36

Which of the following should employers prevent in order to ensure the safety and health of workers in regards to machine guarding?

A) Providing employees with safe tools and equipment

B) Providing employees with personal protective equipment

C) Allowing workers to use a machine without training

D) Ensuring employees are trained in hazard recognition
———————————————
Which of the following types of machine guard is generally preferred because of its simplicity and durability?

A) Interlocked
B) Fixed
C) Self-adjusting
D) Adjustable

Answers

Answer:

1st C 2nd one B

Explanation:

Answer:

1.) C         2.) B

Explanation:

N Apple bought goods on credit from Pencil Point Ltd. What is the double entry to record this transaction in the accounting records of Pencil Point Ltd? a. Debit N Apple, Credit Sales b. Debit Sales , Credit N Apple c. Debit Purchases, Credit Pencil Point ltd d. Debit Pencil point Ltd, Credit Purchases.

Answers

Answer:

c. Debit Purchases, Credit Pencil Point ltd

Explanation:

The journal entry for purchasing the goods from the Pencil point ltd on credit is given below;

Since the goods are purchased so here purchase account is debited and we credited the pencil point ltd

So, the journal entry is

Purchase Dr XXXX

          To Pencil Point ltd XXXX

(Being goods purchased on credit)

The purchase is debited as it increased the assets and pencil point ltd is credited as it also increased the liability

Other Questions
In a perfect capital market, the cost of leasing and thenpurchasing the asset is equivalent to the cost of borrowing topurchase the asset. True or false? the population of a country was 259 million in 1982 and the continuous exponential growth rate was estimated at 1.6% per year. assuming that the population of the country continues to follow an exponential growth model, find the projected population in 1992. round your answer to 1 decimal place. the approximate population in 1992 is\ Which statement summarizes changes to parts of the balance sheet? Income Statement Cash flow statement Both of the above Neither of the above ooo Define the relation O on Z as follows: m, n z, m O n k z |(m n) = 2k +1 Which one of the following statements about the relation O is true? a. The relation is reflexive, symmetric, and transitive. b. The relation is not reflexive, not symmetric, and transitive. c. The relation is not reflexive, symmetric, and not transitive. d. The relation is reflexive, not symmetric, and transitive. A population of rabbits oscillates 33 above and below an average of 104 during the year, hitting the lowestvalue in January (t = 0). Find an equation for the population, P. in terms of the months since January, t. Similar to the mutation question about gastrin in class, if a mutation stops the ability for pepsinogen to respond to the presence of pepsin, what would happen to pepsin production:A.Pepsin production would continue as usualB.Total pepsin quantity would be determined by the amount of pepsinogen already present and stomach acid contentC.Pepsinogen would no longer be produced since it relies on mucus productionD.Gastrin would begin digesting proteins instead 5. [5 pts] You're studying genotypes at a gene that you've discovered contributes to Inflammatory bowel disease (IBD). The gene has two alleles: W and v. WW homozygotes produce, on average,2.2kids. Wv heterozygotes also produce, on average,2.2kids. However, w homozygotes are more likely to have the disease, and therefore, produce, on average,1.7kids. What is the relative fitness of the vV genotype? show your work At a pressure of 1. 00 atm and a temperature of 20C, 1. 72 g CO2 win dissolve in 1L of water. How much CO2 will dis solve if the pressure is raised to 1. 35 atm and the temperature stays the same? Which of the following is a method of closed treatment of fractures?a. Without manipulation and/or tractionb. With manipulation and/or tractionc. Fixation device placed across fracture sited. Without manipulation and/or traction and with manipulation and/or tractione. All are correct EXTERNAL TOOL Course Access Which of the following quotes from the president's speech best explains the goals of the Great Society? "It demands an end to poverty and racial injustice, to which we are totally committed in our time." "Many of you will live to see the day, perhaps 50 years from now, when there will be 400 million Americans- "The water we drink, the food we eat, the very air that we breathe, are threatened with pollution. Our parks ar *Nearly 54 million-more than one quarter of all America-have not even finished high school." question content area top part 1 use a triple integral to find the volume of the solid bounded below by the cone z Calculate the location of the image formed by an 7.95-mm-tall object whose distance from the mirror is 11.0 m . Find the arc length. Leave your answer in terms of .. A semicircle with diameter 17.1 ft A. 17.11 ft B. 4.2757 ft O C. 8.551 ft OD. 24.20 ft select all of the following properties about multidimensional scaling (mds) that are true. group of answer choices A. mds always reduces a high-dimensional space to a 2d projectionB. an mds projection can be rotated and/or reflected without changing how it is interpreted C. mds removes outliers from the dataset, so none appear in the 2d projection each of the points in D. the mds 2d projection correspond to a high-dimensional column from the original dataframe in the 2d projection created by mds, the axes have no meaning in the 2d projection created by mds, the axes correspond to high-dimensional variance axes Graph to solve the system: y=-3/2 and y=(1/2) -1 At what x-values are the equations equal? A bag contains 16 red, 15 blue, and 14 yellow balls. 2 balls are drawn withoutreplacement. Find the probability that:a. Blue, then yellow is selectedb. Red, then red is selected Words or phrases refer to the key ideas that emerged during that Enlightenment the contract, industry, nationalism tolerance womens rights natural rights, separation of powers imperialism historyWhat were some of the key developments in nineteenth andtwentieth century physics and chemistry that called into questionthe working of "the mechanical philosophy?" Which theories inp Dorris deposits $200 into a savings account that has a simple interest rate of 4. 1% Max deposits 300 dollars into a savings account that has a simple interest rate of 1. 9%, who earn more interest in 15 months round to the nearest cent if necessary A company would like to set up a new production line. The new piece of equipment has a service life of 4 years and costs $1 Million. The investor intends to invest $400,000 and borrow $600,000 from the bank to purchase. The annual interest rate of the loan is 15%. At the end of years 1, 2 and 3, $200,000 principal will be paid back to the bank each year in additional to the interest incurred. The revenue generated per year is estimated to be $650,000 (assume to appear at the end of each year). The cost of this production line is estimated to be $150,000 per year. The income tax rate is about 35%. Assuming a straight-line depreciation for the equipment without the salvage value. Develop the cash flow for the calculation of the rate of return to the investor.