Consider credit, such as one receives from using a credit cardNow consider the money/cash available in...

Consider credit, such as one receives from using a credit cardNow consider the money/cash available in one’s checking account. For the average consumer money (e.g cash in a person’s pocket) is_____ and credit is______

Expert Solution

Cash is legal tender used to exchange goods, debt, or services. Sometimes it also includes assets that can be easily converted into cash (like money balance in checking/deposit account). Cash transactions are settled immediately

Credit is the ability of a customer to purchase goods or services with the promise to pay for it later in future. Cash transactions are settled immediately subsequent to the transaction at a later date.

A credit card provides the cardholder credit to pay a merchant for goods and services in return for future payment plus the other agreed charges.

Hence,

For the average consumer money (e.g cash in a person’s pocket) is an asset and credit is a liability

Assets are valuable items owned by a person. They create cash inflow over the years.

Liabilities are financial obligations of person to other person/business. They create cash outflows over the years.

Rahul Sunny answered 2 years ago

3. It is permissible to group cash money of wealth to cash money available from offers...

3. It is permissible to group cash money of wealth to cash money available from offers of commerce and other gained cash money, so that for all these monies that would be one Nisab and one alms year. However, it not permissible to group different kinds of money. Required: Give examples of non-permissible kinds of money for grouping. Q4. Discuss Cash-Basis Accounting and Accrual-Basis Accounting.

A broker receives an earnest money check from one of her affiliate brokers for a property...

A broker receives an earnest money check from one of her affiliate brokers for a property whose purchase offer has just been accepted by the seller. The broker must deposit the earnest money check in her trust account A) within 3 days of the contract acceptance. B) by the next banking day after contract acceptance. C) within 24 hours of the contract acceptance. D) within 48 hours of the contract acceptance.

Relationship Sales Corp. (RSC) is reviewing the credit terms it receives from one of its suppliers...

Relationship Sales Corp. (RSC) is reviewing the credit terms it receives from one of its suppliers and is considering the following proposal. Futrell Ltd. is offering RSC a volume discount of 3% for making purchases of $9,000,000 of its products at a time instead of RSC's current purchases of $1,500,000 per month. To store the additional inventory, RSC will need to rent more warehouse space, which will cost $15,000 per month (including insurance). Currently, each order costs RSC $24,500 in...

A local school district cannot explain where all of the money that it receives from the...

A local school district cannot explain where all of the money that it receives from the state for operations is going. Although annual appropriations to the school district have been steadily increasing, funds available for school operations and equipment purchases have been decreasing. Consequently, you have been asked by the school board to investigate the situation. During your interview with the local school superintendent, you discover the following about Jane Brown, the part-time bookkeeper who manages the school district’s finances:...

Consider the cash people carry in their wallets. This cash is part of the M1 money...

Consider the cash people carry in their wallets. This cash is part of the M1 money supply but not part of the M2 money supply. True False When the bank makes a loan to a business, where does it get the money from? from the purchase of government bonds the bank's required reserves the bank's excess reserves the deposits held at the bank When you compare the prices of two goods, you are using money as a medium of exchange....

Using readily available data, plot two yield curves: One from January 2017 One from January 2019...

Using readily available data, plot two yield curves: One from January 2017 One from January 2019 Based on your understanding of the signals sent by the yield curve: What has happened to the shape of the curve over the last two years? What does this mean for the stock and bond markets? source: fred.stlouisfed.org use this source to select a graph.

Credit cards are not considered as money even though people have been using them like money...

Credit cards are not considered as money even though people have been using them like money for many years. Explain. What is/are the difference(s) between a debit card and a credit card. Give relevant example(s) in Hong Kong. If you pay in virtual currencies such as bitcoin, do you think it is regarded as money according to traditional definitions?

A retail company receives most of its revenue from credit or debit card transactions or payments...

A retail company receives most of its revenue from credit or debit card transactions or payments by check. Funds received from credit and debit card transactions automatically deposit in interest bearing accounts. However, the company does receive some cash payments from customers each day. These cash receipts total $7,250,000 annually. The company makes no cash payments to its suppliers or creditors. Money held in the cash account earns no interest. The company estimates that the transaction cost of moving funds...

DEBIT AND CREDIT ANALYSIS: Complete the following statements using either “debit” or “Credit” The cash account...

DEBIT AND CREDIT ANALYSIS: Complete the following statements using either “debit” or “Credit” The cash account is increased with a ___________Debit________ The common stock account is increased with a ____________Credit________ The equipment account is increased with a ____________________ The cash account is decreased with a ____________________ The accounts payable account is increased with a ___________Credit_________ The revenue account Delivery Fees is increased with a ____________________ The asset account Accounts...

Your firm purchases a machine for $72,662. You purchase the machine using current available cash-balances from...

Your firm purchases a machine for $72,662. You purchase the machine using current available cash-balances from a previous period. You have sales from your retail customers of $289,729. These customers pay with cash. Your sales from commercial consumers are $31,864. These customers pay with credit. The cost of your overhead is $17,463 which you pay for with credit. You have variable costs of $11,658 which you pay for with cash. Your firm's tax rate is 25% Finally, you collect on...

Question