Analyze the transactions and indicate whether each transaction is an operating activity, investing activity, financing activity, or noncash investing and financing activity.

Answers

Answer 1

The purchase of the machine for $30,000 will be recorded as noncash investing and financing activities.

In accounting, statement of cash-flow is a statement that calculate the amount of cash and cash equivalents that comes and leaves the company.

The section of the statement of cash-flow are divided into the operating activities, investing activities and financing activities.

The significant noncash financing and investing activities are reported on the company's income statement.

In conclusion, the Option D is correct because the purchase of the machine for $30,000 will be recorded as noncash investing and financing activities.

Missing word includes "Purchased a machine for $30,000, giving a long-term note in exchange."

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Related Questions

he balance sheet for Crutcher Corporation reported 220,000 shares outstanding, 320,000 shares authorized, and 22,000 shares in treasury stock. Compute the maximum number of new shares that Crutcher could issue.

Answers

Based on the information given the maximum number of new shares that Crutcher could issue is 78,000 shares.

First step is to calculate Issued share using this formula

Issues shares=Outstanding shares + Treasury stock shares

Let p[lug in the formula

Total authorized shares=220,000+22,000

Total authorized shares=242,000 shares

Second step is to calculate the maximum number of new shares using this formula

Maximum number of new shares =Authorized shares- Issued shares

Let plug in the formula

Maximum number of new shares=320,000-242,000

Maximum number of new shares =78,000 shares

Inconclusion the maximum number of new shares that Crutcher could issue is 78,000 shares.

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During 2019 Pulseflow had Cash Paid for Inventory of $25,000 and they purchased equipment costing $5,000 and furniture costing $10,000. What would their Net Cash Used by Investing Activities be

Answers

The net cash used by investing activities by Pulseflow Corporation is $15,000.

Data and Calculations:

Operating Activities:

Inventory = $25,000

Investing Activities:

Equipment = $5,000

Furniture = $10,000

The Investing Activities included the purchase of equipment and furniture.

Thus, the net cash used by investing activities is $15,000 ($5,000 + $10,000).

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At high price levels, demand tends to be ________ and the price effect is ________, relative to the output effect.

Answers

At high price levels, demand tends to be elastic and the price effect is small relative to the output effect.

If insurance companies are required to offer coverage to all interested people, it is said that premiums for each person will be increased. Assume that the insurance market is perfectly competitive. What is the major reason for raising the premium

Answers

Answer:

to make sure that your company gets the upper hand and to make more money off of your premium then what the other companies are making

Explanation:

as a project manager for a large construction company, Shaun decided to make the performance appraisal process as painless as possible for his crew. he spent a considerable amount of time creating performance standards he felt were reasonable, and after six months' time, he scheduled individual appointments with each worker to discuss strengths and weaknesses and areas that needed improvement according to the standards he privately set. some employees were sent to vestibule training, and one even got a promotion with additional compensation. what did he fail to do correctly?
1, communicate the performance standards to the employees so they know what is expected
2, copy the HR department on all the results, within 24 hours of each appraisal
3, dismiss at least 10% of the work crew.
4, provide a pleasant environment for the appraisal such as a restaurant setting.

Answers

Answer:

he failed to communicate expected performance standards to the employees

Explanation:

this is because the employees could have continued with their current performance instead of changing it to adapt to the expected situation

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1. Which of the following statements is FALSE?
a. It is better to wait until interest rates are high to start saving.
b. Investing tends to have a higher risk than saving.
c. A savings account is best for meeting short-term goals.
d. Low interest rates decrease the inventive to save.

Answers

Answer:    I think that a. is false.

Explanation:

Answer:

a true

b false

c false

d true

Harold is part of a human resources team researching a cafeteria benefits program for his company. Once their research is complete and presented to management, Harold will return to his regular HR responsibilities. Harold is part of a temporary, self-managed, cross-functional team. True False

Answers

The answer for this question is true

Harold is part of a human resources team researching a cafeteria benefits program for his company. Harold is part of a temporary, self-managed, cross-functional team. The statement is true.

What is research?

Research refers to deep investigations of the data and information available to provide credentials with facts and figures to provide results that will utilize for the new research.

The Functions of the Human Resource department include the hiring and onboarding of a candidate in an organization. It also includes their training and development as well as performance appraisal by examining their performance in the organization.

The function of a cross-functional team is handling different working in different departments for a certain period of time, in this case, Harold is doing the same, working for the research department for a fixed project and then coming back to the HR department.

Therefore, the statement is True.

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Sales Transactions and T Accounts Using T accounts for Cash, Accounts Receivable, Sales Tax Payable, Sales, Sales Returns and Allowances, and Sales Discounts, enter the following sales transactions. 1. No sales tax. (a) Merchandise is sold for $320 cash. (b) Merchandise is sold on account for $385. (c) Payment is received for merchandise sold on account.

Answers

Answer:

Payment id received for merchanise sold on account

List five kinds of harm that could occur to your own personal computer. Estimate the likelihood of each, expressed in number of times per year (number of times could be a fraction, for example, 1/2 means could be expected to happen once every two years). Estimate the monetary loss that would occur from that harm. Compute the expected annual loss from these kinds of harm.

Answers

The most frequent damages in computers are: Blue screen, Ram problems, continuous shutdown, slow performance, and virus infection.

Blue screen. It is estimated that it can happen 1/2 per year. It is one of the most common computer problems. Generally, it indicates a serious problem, which may be hardware or driver related, so the repair value is high, about $ 50.

RAM problems. It is estimated that it can happen 2/4 per year. It is a problem that is caused by misconfiguration, or a RAM slot is not fitting correctly, which causes it to not work. Its repair is worth about $ 25.

The computer shuts down by itself or restarts itself. It is estimated that it can happen 12/20 times per year. This damage is caused by lack of maintenance in the hardware or problems with the software. For example, if there is dust accumulated on the fans, this obstructs the air and does not allow the computer to cool properly, causing it to shut down. Your repair is worth about $ 50.

Slow performance. It is estimated that it can happen 45/50 times per year. This damage is caused by different factors. However, the most common is the lack of maintenance. Your repair costs about $ 15.

Computer infected with viruses. It is estimated that it can happen 6/10 in a year. Viruses are a type of software that can harm your computer and related systems. Your repair costs about $ 20.

According to the above, the total estimated cost per year for the computer fix is ​​$ 160.

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Lopez Company is considering replacing one of its old manufacturing machines. The old machine has a book value of $47,000 and a remaining useful life of five years. It can be sold now for $57,000. Variable manufacturing costs are $47,000 per year for this old machine. Information on two alternative replacement machines follows. The expected useful life of each replacement machine is five years.
Machine A Machine B
Purchase price$ 118,000$ 131,000
Variable manufacturing costs per year21,000 14,000
(a) Compute the income increase or decrease from replacing the old machine with Machine A.
(b) Compute the income increase or decrease from replacing the old machine with Machine B.
(c) Should Lopez keep or replace its old machine

Answers

a) The income increase from replacing the old machine with Machine A is $21,800 ($56,400 - $44,600 + $10,000).

b) The income increase from replacing the old machine with Machine B is $26,200 ($56,400 - $40,200 + $10,000).

c) The Lopez Company should replace its old machine, preferably with Machine B.

Data and Calculations:

Current selling price =$57,000

Gain from the sale of old machine = $10,000 ($57,000 - $47,000)

                                                  Old Machine    Machine A     Machine B

Book value                                     $47,000

Purchase price                                                    $118,000        $131,000

Variable manufacturing costs        47,000           21,000            14,000

Estimated remaining useful life    5 years           5 years          5 years

Fixed costs per year                      $9,400        $23,600        $26,200

Total costs (variable + fixed)       $56,400        $44,600        $40,200

Comparative income increase       $0                $11,800         $16,200

Total income increase                    $0               $21,800        $26,200 ($16,200 + $10,000)

Thus, it is economically better for Lopez to sell its old machine, replacing it with Machine B, which reduces the total costs per year.

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The ……………. refers to something being put into the system. This is transformed by the organisation (or parts of it) through an activity or function of the organisation.

Answers

Answer:

any options ?

Explanation:

any options ?

Face 2 Face Corporation reports 100 outstanding shares, 500 authorized shares, and 50 shares of treasury stock. How many shares are issued?

Answers

Based on the total number of shares in circulation, we can infer that the number of shares issued was 150 shares.

The shares issued are those that the company sold to the public out of those that were authorized to them.

To find the issued shares, use the formula:

= Shares outstanding + Treasury shares

= 100 + 50

= 150 shares

In conclusion, 150 shares were issued.

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In a year in which common stocks offered an average return of 12% and Treasury bills offered 3%. The risk premium for common stocks was:

Answers

Considering the information given, the Risk premium on stock is 9%.

Given Information

Expected return on market = 12%

Risk free rate = 3%

The formula for Risk premium on stock is {Expected return on market - Risk free rate}

Risk premium on stock = 12% - 3%

Risk premium on stock = 9%

Hence, the Risk premium on stock is 9%.

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alalakjmi >>
ehsnn ajakj akjlskj sajlklk sa

Answers

Answer:

Hi there what is your question

hope you have an awesome day

Explanation:

To encourage employees to work the extra hours needed to get a start-up company off the ground, the CEO offered to institute a profit sharing program for everyone. Which condition that contributes to high performance is most demonstrated at this company

Answers

Answer:

can i have a choise

Explanation:

thanks

Leaders regularly communicate with subordinates to provide them instructions on the tasks that need to be completed in a high-performance workplace.Leaders reduce distractions and free team members to concentrate on their jobs by finding rapid solutions to issues.

What is a key element of high performance work systems?

This article's main objective is to outline the essential components of HPWS and show how, in the knowledge, wisdom, and information-based economy of today, forging partnerships with workers makes business sense for employers.Business professionals may be able to avoid mistakes that "conventional wisdom" can lead to and that are increasingly recognized as the root of much organizational dysfunction and decline by understanding the findings of recent research about this high trust and high empowerment management philosophy.The HPWS systems place a strong emphasis on employee involvement and show a dedication to developing an organizational culture that values commitment above control.The cultures of high performance businesses also place a strong emphasis on the pursuit of excellence and demand that employees possess a high level of qualification, competence, and improvement-oriented behavior. Management specialists have studied HPWS in depth and have discovered common management techniques that boost organizational performance and foster competitive advantage.The seven human resource techniques listed below are intended to increase revenues by involving workers as full owners and collaborators in an organization's success.Seven High Performance Work System Practices (HPWS)Security for Employees, Selected Hiring, Decentralized Decision-Making, etc.High Compensation Based on Results.Training through Commitment.Status barriers are lessened.sharing important data. Each employee's and work group's accomplishments in a high-performance work system add to the system's overall high performance.Since ethical behavior mostly benefits short-term relationships with employees but is unsustainable over time, it is an optional requirement for great performance.

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Imagine being an advisor to Hank Harris. What would you suggest should be Seller's Lab competitive strategy going forward

Answers

Seller's lab can use either the cost leadership, cost focus, differentiation leadership, or differentiation focus strategy depending on the situation of the company.

A competitive strategy is a defined plan that allows a company to:

Increase its profits.Have an advantage over competitors.Adress customers' needs.

In marketing, four main strategies can be used depending on the situation and objectives of each company

Cost leadership strategy: The purpose of this strategy is to have lower costs than similar companies, which increases profit.Cost focus: This strategy aims at reducing costs to increase profit.Differentiation leadership: This strategy aims at making the company's products unique in comparison to similar companies.Differentiation focus: This strategy focuses on adding special characteristics to products, which can influence customers' loyalty.

Note: This question is incomplete because there is no information about Seller's lab. Due to this, I answered it based on general knowledge.

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Select the BEST answer choice.

The U.S government is involved in the country's economic well-being. For example, the government produces and purchases goods and services. Which of the following is a real example of the government producing or purchasing goods and services to affect the economy?

A - A state government setting a sin tax on unhealthy, sugary cereal.

B - The Federal Trade Commission setting policy on advertising to children.

C - A lottery whose proceeds benefit the elderly.

D - A monopoly being broken up into smaller companies.

Answers

Answer:

Hi How may I help?

Explanation:

Bramble University sells 3,500 season basketball tickets at $80 each for its 10-game home schedule. Bramble considers revenue to be earned proportionately as each game is played, regardless of how many ticket-holders attend the game. For the journal entries below, use the following account abbreviations: REV

Answers

If Bramble earned proportionately as each game is played, the appropriate journal entry are:

Based on the information given if the university sells 3,500 season basketball tickets at $80 each game, the appropriate journal entry to record the transaction is:

Bramble University journal entry

Debit Cash $280,000

Credit Unearned ticket revenue $280,000

(3,500 x $80 =$280,000)

(To record sales of ticket)

Debit Unearned ticket revenue $28,000

Credit Ticket revenue $28,000

(3,500 x $80)/10=$28,000)

(To record revenue recognized)

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A stock is currently selling for $80 per share. You could purchase a call with a strike price of $76 for $9. You could purchase a put with a strike price of $76 for $3. Calculate the intrinsic value of the call option.

Answers

Answer:

76

Explanation:

ther cell is god

Why was the system of checks and balances included in the Constitution?

a to keep the President of the United States from vetoing legislation
b to slow down the process of government so it doesn't move too fast
c to prevent one branch of the government from becoming too powerful

Answers

Answer:

C to prevent one branch of the government from becoming too powerful

Each of the following solutions were developed to lessen an asymmetric information problem. Sort each solution into the problem it aimed to address.
a. a health screening to determine acceptance into a health insurance plan.
b. a telematic device in a prospective car insurance customer's vehicle that tracks driving behavior.
c. a video monitoring system in your home while your babysitter is there.
d. a company requirement that the chief executive officer hold at least five times their annual salary in company stock.
1. Adverse selection
2. Principal-agent

Answers

The following are solutions to adverse selection:

a. a health screening to determine acceptance into a health insurance plan.

b. a telematic device in a prospective car insurance customer's vehicle that tracks driving behavior.

The following are solutions to principal-agent problem:

c. a video monitoring system in your home while your babysitter is there.

d. a company requirement that the chief executive officer hold at least five times their annual salary in company stock.

Asymmetric information is when one of the parties in a transaction has more information than the other parties in the transaction.  

Adverse selection is an effect of  asymmetric information. This is when the party with more information takes steps to their advantage to the detriment of other parties. The principal-agent problem occurs when the interests of a public company's managers and shareholders are  not aligned.  

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The issue of the enforceability of covenants not to compete is typically a matter of state common law (so enforceability varies state-by-state based on case-by-case court decisions). In general, for a covenant not to compete to be enforceable, the restraints (time restrictions, territory restrictions, scope of activity restrictions) must protect a legitimate business purpose, must not impose an undue burden on the employee, and must be otherwise reasonable.

Required:
Do you believe that the restraints in this covenant not to compete ("Restrictive Covenant") should be enforceable? Why or why not? Explain

Answers

Answer:

The issue of the enforceability of covenants not to compete is typically a matter of state common law (so enforceability varies state-by-state based on case-by-case court decisions). In general, for a covenant not to compete to be enforceable, the restraints (time restrictions, territory restrictions, scope of activity restrictions) must ...

Do you believe that the restraints in this covenant not to compete ("Restrictive Covenant") should be enforceable? Why or why not? Explain

Explanation:

The type of conflict that stimulates employees to work toward greater effort, cooperation, and creativity is ______________ conflict. a. concentrated b. dysfunctional c. destructive d. functional

Answers

The functional conflict is  conflict that stimulates employees to work toward greater effort etc

Functional conflict is known as a healthy and constructive disagreement that occurs between employees, groups, individuals etc.

This kind of conflict is beneficial because its stimulates employees to work toward greater effort, cooperation etc

Therefore, the Option D is correct.

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Schweigert Paint Company, which prepares annual financial statements, is preparing adjusting entries on December 31. Analysis indicates the following:
(1.) The company is the defendant in an employee discrimination lawsuit involving $50,000 of damages. Legal counsel believes it is unlikely that the company will have to pay any damages.
(2.) December 31st is a Friday. The employees of the company have been paid on Monday, December 27th for the previous week which ended on Friday, December 24th. The company employs 30 people who earn $100 per day and 15 people who earn $160 per day. All employees work 5-day weeks.
(3.) The company is a defendant in a $500,000 product liability lawsuit. Legal counsel believes the company probably will have to pay the amount requested.
Prepare any adjusting entries necessary at the end of the year.

Answers

The Adjusting Journal Entries that Schweigert Paint Company will make in its records include the following:

Adjusting Journal Entries on December 31:

1. No Journal Entry Required

2. Debit Wages Expense $27,000

Credit Wages Payable $27,000

To accrue unpaid wages for one week to December 31.

3. Debit Product Liability Expenses $500,000

Credit Product Liability Payable $500,000

To record the product liability expense.

Data Analysis:

1. No Journal Entry Required

2. Wages Expense $27,000 Wages Payable $27,000.  ($100 x 30 x 5) + ($160 x 15 x 5)

3. Product Liability Expenses $500,000 Product Liability Payable $500,000

Thus, the adjusting entries as of December 31 do not include transaction 1.

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Select the BEST answer choice.

Read the following scenario and identify the way in which the government is demonstrating economic involvement. Sam's Super Healthy Candy is going out of business after the government severely fined the company for failing to inform consumers about the added sugar in the company's products.

Group of answer choices

Maintains competition

Produces goods and services

Provides welfare services

Manages regulatory programs

Answers

Government can demonstrate its economic involvement by d. manages regulatory programs.

According to the regulation on consumer services, Sam's Super Healthy Candy must inform consumers about the added sugar in its products. For failing to do this, the government severely fined the company. In this way, the government shows that it is involved in the economy through its regulatory activities.

The government does not show its economic involvement by only maintaining competition, producing goods and services, or providing welfare services.

Thus, the government demonstrates its economic involvement by regulating the activities of commercial entities.

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Fiat money is generally issued by A. central banks. B. private banks. C. major multinational corporations. D. brokerage firms.

Answers

Fiat money is generally issued by central banks. The answer to this question is option A.

Fiat money can be described as the currency that is issued by the government of a country. The Fiat is not a currency that is backed by gold.

The central bank of the country is the body that is responsible for this currency.

The fiat is important to the economy because it gives the federal government of the nation a better control over what is printed in the economy as money.

Paper money such as the US dollar is an example of a fiat currency.

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Select the correct answer.
Zhu Dong manages a financial consulting firm of a few employees. He realizes that one of his best employees is facing problems at work. Dong plans to talk to the employee individually, hear out any grievances, and counsel the employee. Which type of communication does Dong plan to engage in?

A.
interpersonal communication
B.
departmental communication
C.
interdepartmental communication
D.
company-wide communication

Answers

Answer:

interpersonal communication

A system that collects and stores the company's key data and produces the information needed by managers for analysis, control, and decision making is called a(n):

Answers

A system that collects and stores the company's key data and produces the information needed by managers is called information system.

Information system is a system that help to store, record and process large amount of information so as to made available useful information when needed by users.

Information system is important as  it help to produce data when needed during decision making process as companies or organizations can easily extract the store information so as to make better decision.

Most companies make use of information system to plan and to improve the  day to day running of their business operation.

Inconclusion a system that collects and stores the company's key data and produces the information needed by managers is called information system.

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Kansas Pizza Pantry opened its first restaurant in Lawrence, Kansas in 1985. Almost immediately after the first location opened, it expanded from Kansas Pizza Pantry to more than 250 locations in more than 30 states and 11 countries. Kansas Pizza Pantry completed an initial public offering in August 2000. Several years ago, Silver Capital completed the acquisition of Kansas Pizza Pantry and, as a result of the acquisition, the company's common stock is no longer publicly traded.
KANSAS PIZZA PANTRY, INC., AND SUBSIDIARIES
Consolidated Statements of Operations
(amounts in thousands, except for per share data)
Year 3 Year 2 Year 1
Revenues:
Restaurant sales $ 633,106 $ 652,685 $ 665,616
Royalties from licensing agreement 6,722 8,239 6,580
Domestic franchise revenues 4,200 2,934 2,757
International franchise revenues 3,153 2,178 2,121
Total revenues 647,181 666,036 677,074
Costs and expenses:
Food, beverage and paper supplies 149,732 155,181 165,526
Labor 237,383 247,850 247,276
Direct operating and occupancy 142,920 142,473 140,367
Cost of sales 530,035 545,504 553,169
General and administrative 50,831 51,041 51,642
Depreciation and amortization 37,156 40,331 40,299
Pre-opening costs 3,369 1,893 4,478
Loss on impairment of property and equipment 18,952 23,441 13,336
Store closure costs 1,758 564 1,033
Litigation, settlement and other costs 8,909 1,659 736
Total costs and expenses 651,010 664,433 664,693
Operating (loss)/income (6,279 ) 3,303 12,381
Interest expense, net (26 ) (783) (1,324)
(Loss)/income before income tax (benefit)/provision (6,305 ) 2,520 11,057
Income tax (benefit)/provision (5,239 ) (2,141) 2,395
Net (loss)/income $ (1,066 ) $ 4,661 $ 8,662
Net (loss)/income per common share:
Basic $ (0.07 ) $ 0.19 $ 0.34
Diluted $ (0.07 ) $ 0.19 $ 0.34
Weighted average shares used in calculating net (loss)/income per common share:
Basic 24,738 24,564 25,193
Diluted 24,738 24,393 25,211
KANSAS PIZZA PANTRY, INC., AND SUBSIDIARIES
Consolidated Balance Sheets
(in thousands, except for share data)
Year 3 Year 2
Assets
Current assets:
Cash and cash equivalents $ 14,465 $ 23,724
Other receivables 12,844 13,041
Inventories 6,427 6,557
Current deferred tax asset, net 8,675 7,576
Prepaid rent 306 5,957
Other prepaid expenses 2,818 2,281
Total current assets 45,535 59,136
Property and equipment, net 242,446 256,416
Noncurrent deferred tax asset, net 22,601 25,511
Goodwill 4,722 4,872
Other intangibles, net 5,087 4,964
Other assets 8,813 7,409
Total assets $ 329,204 $ 358,308
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $ 17,675 $ 11,763
Accrued compensation and benefits 23,923 23,701
Accrued rent 21,174 20,287
Deferred rent credits 4,358 4,245
Other accrued liabilities 14,190 11,915
Gift card liability 14,877 21,140
Store closure reserve 79 351
Total current liabilities 96,276 93,402
Long-term debt --- 22,800
Other liabilities 9,986 8,728
Deferred rent credits, net of current portion 33,677 32,978
Income taxes payable, net of current portion 329 10,125
Commitments and contingencies - -
Stockholders’ equity:
Common stock—$0.01 par value, 80,050,000 shares
authorized, 27,100,000 and 26,700,000 shares issued and outstanding at end of Year 3, and Year 2, respectively 271 267
Additional paid-in capital 174,563 174,500
Retained earnings 14,102 15,508
Total stockholders’ equity 188,936 190,275
Total liabilities and stockholders’ equity $ 329,204 $ 358,308
Required:
Compute the following ratios for Year 3 using information from the company annual report that was issued before Kansas Pizza Pantry was acquired. Assume a market price per share of $1.26.(Round your answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34). Negative amounts should be indicated by a minus sign.)
Ratios are: Return on equity, Net profit margin, Inventory turnover, Current ratio, Quick Ratio, Debt-to equity ratio, Price/earnings ratio.

Answers

The financial ratios for Kansas Pizza Pantry are computed as follows:

1. Return on Equity = Net loss/Stockholders' Equity x 100

= $(1,066)/$188,936 x 100

= -0.56%

2. Net Profit Margin = Net loss/Total revenue x 100

= $(1,066)/$647,181 x 100

= -0.16%

3. Inventory Turnover = Cost of goods sold/Average  Inventory

= $530,035/$6,492

= 81.6 times

4. Current Ratio = Current assets/Current liabilities

=  $45,535/$96,276

= 0.47

5. Quick Ratio = Current assets - Inventories/Current liabilities

= $45,535 - $6,427/$96,276

= 0.41

6. Debt-to-Equity Ratio = Total Debts/Total Equity

= $140,268/$188,936

= 74%

7. Price/Earnings Ratio = $1.26/$(0.07)

= -18 times

Data and Calculations:

Total revenues = $647,181

Cost of sales = $530,035

Net (loss)/income = $(1,066)

Basic EPS = $ (0.07)

Total current assets = $45,535

Total current liabilities = $96,276

Total liabilities and stockholders’ equity = $329,204

Total stockholders’ equity = $188,936

Total liabilities = $140,268 ($329,204 - $188,936)

Less current liabilities = $96,276

Long-term liabilities = $43,992 ($140,268 - $96,276)

Average Inventories = $6,492 ($6,427 + $6,557)/2

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Which best describes the economic impact of defaulting on bank loans?

The economy suffers because banks have less money to loan to others.
The economy suffers because people have less money to spend.
The economy suffers because businesses are scared to take out loans.
The economy suffers because people are scared to take out loans.

Answers

Answer:

The answer is A.

Explanation:

The economy suffers because banks have less money to loan to others.

The economic impact of defaulting on bank loans is that the economy suffers because banks have less money to loan to others.

What is effect of defaulting on bank loans?

If a bank gives loan to people and they refuse to pay back, there won't be enough money to lend other customers.

Therefore, option A is correct because, economy suffers because banks have less money to loan to others.

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