The following information taken from the books of a VAT registered enterprise was provided to you:

Domestic sales of goods P3,000,000

Sales of packaging materials to an export-oriented enterprise whose export sales exceeds 70% of the total annual production 2,000,000

Local sales of goods to Asian Development Bank 500,000

Consignment of goods (not returned within 60 days following the date of consignment) 200,000

Goods transferred for the personal use of the owner 100,000

How much is the output tax using 12% VAT rate?

Answers

Answer 1

The output tax using a 12% VAT rate is P636,000. This is calculated by adding the VATable sales amounts (P3,000,000 + P2,000,000 + P500,000 + P200,000 + P100,000).

To calculate the output tax, we need to determine the VATable sales amounts and apply the VAT rate. In this case, we have several components:

Domestic sales of goods: P3,000,000

Sales of packaging materials to an export-oriented enterprise: P2,000,000

Local sales of goods to Asian Development Bank: P500,000

Consignment of goods: P200,000

Goods transferred for the personal use of the owner: P100,000

To find the total VATable sales, we add up all these amounts: P3,000,000 + P2,000,000 + P500,000 + P200,000 + P100,000 = P5,800,000.

Next, we apply the VAT rate of 12% to the total VATable sales: P5,800,000 x 12% = P696,000.

Finally, the output tax is P696,000.

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Related Questions

how has technology changed communication over the past decade?​

Answers

Answer:

Explanation:

Advancements in technology and changes in communication generally go hand in hand. Landlines displaced the telegraph and cell phones replaced landlines. The arrival of the internet opened new doors of personal communication. E-mails replaced postal mails and social media took the place of text messages

What is the average amount that each score varies from the mean of the set of scores? a. the range b.the standard deviation c.the mean d.the normal curve.

Answers

The average amount that each score varies from the mean of the set of scores is represented by the standard deviation. Therefore, option B is the correct answer.


The range (option A) is the difference between the highest and lowest values in a dataset, and it does not provide information about how much individual scores vary from the mean.

The mean (option C) is the average score in a dataset, but it does not provide information about how much individual scores vary from the mean.

The normal curve (option D) is a statistical distribution that is used to describe a large number of naturally occurring phenomena, including many types of test scores. However, it does not provide information about the average amount that each score varies from the mean. information about how much individual scores vary from the mean.

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Percent of Sales Method At the end of the current year, Accounts Receivable has a balance of $405,000; Allowance for Doubtful Accounts has a debit balance of $3,500; and sales for the year total $1,820,000. Bad debt expense is estimated at 1/4 of 1% of sales. 1. Determine the amount of the adjusting entry for uncollectible accounts.2. Determine the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expense. Accounts Receivable Allowance for Doubtful Accounts Bad Debt Expense 3. Determine the net realizable value of accounts receivable.

Answers

The amount of the adjusting entry for uncollectible accounts can be calculated by multiplying the sales for the year by the estimated bad debt expense rate. In this case, the bad debt expense is estimated at 1/4 of 1% of sales.

Sales * Bad debt expenditure rate = Bad debt expense

Bad debt expense = $1,820,000 * (1/4) / 100

Bad debt expense = $4,550

Therefore, the amount of the adjusting entry for uncollectible accounts is $4,550.

We must consider the current balances as well as the adjusting entry to obtain the adjusted balances of Accounts Receivable, Allowance for Doubtful Accounts, and Bad Debt Expenses.

Accounts Receivable:

Adjusted balance = Beginning balance + Sales - Collections

Adjusted balance = $405,000 + $1,820,000 - Collections (unknown)

Allowance for Doubtful Accounts:

Adjusted balance = Beginning balance + Adjusting entry

Adjusted balance = $3,500 + $4,550

Adjusted balance = $8,050

Bad Debt Expense:

Adjusted balance = Adjusting entry

Adjusted balance = $4,550

The net realizable value of accounts receivable is calculated by deducting the Allowance for Doubtful Accounts from the Accounts Receivable.

Net realizable value = Accounts Receivable - Allowance for Doubtful Accounts

Net realizable value = $405,000 - $8,050

Net realizable value = $396,950

Therefore, the net realizable value of accounts receivable is $396,950.

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BUSINESS 1. Explain five advantages a firm would enjoy by engaging in prize winning competition as a method of sales promotion.​

Answers

Answer:

I hope my answer is good!

1- Increased brand awareness: Prize-winning competitions can generate a lot of buzz and excitement, which can lead to increased brand awareness and visibility for the company.

2- Increased sales: By offering a prize, companies can incentivize customers to purchase their products or services, resulting in increased sales.

3- Customer engagement: Prize-winning competitions can also help companies to engage with their customers, as they are more likely to participate in the competition if there is a chance to win a prize.

4- Cost-effective: Prize-winning competitions can be a cost-effective way for companies to promote their products or services, as the cost of the prizes can be less than the cost of traditional forms of advertising.

5- Consumer data collection: Prize-winning competitions can also help companies collect valuable data on their customers, such as contact information, demographic information, and purchasing habits.

Answer: creates new things

Explanation:

creates word of mouth

creates a reason to ,creates a focused marketing approach, creates great revenue, creates a source of information

why is tax accounting important?

Answers

Answer:

Tax accountants ensure that companies and individuals comply with tax laws by filing their federal and state income tax returns. Some tax accountants also offer tax planning advice to help businesses and individuals save money in taxes.

Which of the following could be considered collateral for a loan? (Select all that apply.)
A. buildings
B. inventory
C. machinery
D. wages

Answers

Option B: inventory

Collateral is simply an asset, such as a car or home, that a borrower offers up as a way to qualify for a particular loan. collateral can make a lender more comfortable extending the loan since it protects their financial stake if the borrower ultimately fails to repay the loan in full.

The biggest risk of a pawn loan is that you can lose your assets if you don't repay the loan. it's especially dangerous if you back your loan with a very valuable asset like your home. It requires you to have valuable assets.

many banks and credit unions offer savings accounts, certificates of deposit (CD) funds, or secured personal loans, which are personal loans secured by your car. for this reason, these loans are sometimes referred to as mortgages. often there is no limit to these types of credits.

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collecting information, analyzing the benefits of all possible choices and then makes decisions. which type of decision-making

Answers

Type of decision making is collect data and information, analyzing the benefits of all possible choices and then makes decisions.

An individual's decision-making process consists of a number of processes they take to choose the best alternative or course of action for their requirements. In the context of business, it refers to a series of measures performed by managers inside an organization to decide the intended course for business objectives and to initiate certain actions.

The success of a firm depends on making both important and minor decisions. The urge to find a solution to an issue or seize a chance drives decisions. Making educated judgments requires getting the appropriate amount of data and feedback from important parties.

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1/Explain how these factors influence the types of information
included on the specification:
Company policies
Storage facilities
Menu requirements
Budgetary limitations
Employee skills

Answers

The factors of company policies, storage facilities, menu requirements, budgetary limitations, and employee skills influence the types of information included on the specification by determining the guidelines, constraints, and capabilities within which the specification must operate.

Company policies play a significant role in shaping the information included on the specification. These policies outline the organization's rules and regulations, which may dictate specific requirements or restrictions regarding the sourcing of ingredients, ethical considerations, or sustainability practices. The specification must align with these policies to ensure compliance and consistency in the company's operations.

Storage facilities also impact the information on the specification. The availability and capacity of storage facilities influence decisions regarding quantities, packaging, and shelf life requirements. Specifications need to account for storage conditions such as temperature, humidity, and handling instructions to ensure product quality and safety throughout the supply chain.

Menu requirements define the desired characteristics and attributes of the final product. Whether it's a restaurant menu or a food manufacturing specification, the information included will vary based on the specific menu items, their ingredients, portion sizes, cooking methods, and presentation. The specification needs to capture these details to ensure that the final product meets the desired taste, appearance, and quality standards.

Budgetary limitations are another critical factor. The cost considerations associated with ingredient selection, processing methods, packaging, and other elements must be taken into account. The specification should include information that helps optimize costs without compromising on quality or customer expectations. It may specify cost-effective alternatives, efficient production processes, or ingredient substitutions to meet budget constraints.

Employee skills also influence the specification. The capabilities and expertise of the workforce determine the complexity of the processes, techniques, and equipment involved. The specification should provide clear instructions, procedures, and standards that align with the skills and capabilities of the employees who will be responsible for executing the tasks outlined in the specification.

In summary, these factors shape the information included on the specification by setting guidelines, defining requirements, imposing constraints, and considering capabilities. The specification needs to accommodate company policies, storage limitations, menu requirements, budgetary considerations, and employee skills to ensure efficient and effective production processes and to meet the desired product outcomes.

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How long had it been since boats were the only way on & off manahattan

Answers

Answer:

The previous day, Monday, September 10, 2001, had been a long night for the New York charter boat captain

Explanation:

Freitas was about to take part in what has become known as the 9/11 boat lift—the largest water evacuation in history and one of the uplifiting, if lesser-known, episodes of that terrible day when terrorists flew two passenger jets into the iconic Twin Towers—part of a multipronged attack on America A makeshift armada of about 150 commercial vessels of various types—tugboats, ferries, charter boats—would transport an estimated 500,000 people out of the disaster zone of lower Manhattan to safety in New Jersey and Brooklyn.

Which type of organizational structure has multiple managers having authority over an employee
A.point structure
B.line structure
C.staff structure
D.functional structure

Answers

Answer:

I believe it’s line structure

Explanation:

A cessation of work by union members in order to obtain economic benefits or correct an unfair labor practice is
A. a strike.
B. a cooling off period.
C. illegal.
D. a boycott.

Answers

The answer is A. a strike

deals with the challenges that a company
faces in the ever-changing business
environment

Answers

Answer:

Strategy.

Explanation:

Strategy can be defined as a coordinated deployment of a firm’s resources to achieve competitive advantage in the industry where it operates. Basically, it is a long-term plan of action that is focused on using a firm's available resources to achieve set objectives and goals such as includes dominating the market, expanding the business, meeting customer's demands etc.

Generally, the top executive management is saddled with the responsibility of ensuring that their business strategy is in tandem with the aim, objectives, vision and mission statement. A good business strategy is a continuous process that should function as a roadmap or guide to achieve competitive advantage, sustained profitability, growth and development of an organization.

Hence, strategy deals with the challenges that a company faces in the ever-changing business environment.

Additionally, the strategy formulated by an organization can be classified into the following categories; growth strategy, marketing strategy, product strategy etc.

a project has sales of $300,000, costs of $200,000, depreciation of $60,000, interest expense of $4,000, and a tax rate of 21 percent. what is the value of the depreciation tax shield?

Answers

The value of the depreciation tax shield is (C) $12,600.

What is depreciation?

An asset loses value over time as a result of use, damage, or obsolescence.

Depreciation is the measurement of this decline.

Depreciation, or a decline in asset value, can be brought on by a variety of other variables, such as bad market conditions, etc.

So, the value of the depreciation tax shield:

The depreciation tax shield formula:  Depreciation Tax Shield = Depreciation Expense * Tax Rate %

Now, substitute values and calculate as follows:

Depreciation Tax Shield = Depreciation Expense * Tax Rate %

Depreciation Tax Shield = 60,000 * 0.21

Depreciation Tax Shield = $12,600

Therefore, the value of the depreciation tax shield is (C) $12,600.

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Complete question:
A project has sales of $300,000, costs of $200,000, depreciation of $60,000, interest expense of $4,000, and a tax rate of 21 percent. what is the value of the depreciation tax shield?

a. $47,400

b. $24,800

c. $12,600

d. $38,800

What is the difference between marginal cost and marginal revenue?


a) Marginal cost is the money earned from selling one more unit of a good. Marginal revenue is the money paid for producing one more unit of a good.

b) Marginal cost is the money paid for producing one more unit of a good. Marginal revenue is the money earned from selling one more unit of a good.

c) Marginal cost is the money a producer might make from one more unit. Marginal revenue is the money a producer actually makes from one more unit.

d) Marginal cost is the money a producer actually makes from one more unit. Marginal revenue is the money a producer might make from one more unit.

Answers

The correct answer is: b) Marginal cost is the money paid for producing one more unit of a good. Marginal revenue is the money earned from selling one more unit of a good.

Story #1 Suppose you found an investment that earns 8.0% each year. Suppose you invest 12,000 dollars today. How many dollars will you have at the end of year five? A Between 12,000 and 14,000 B Between 14,000 and 15,000 C Between 15.000 and 16,000 D Between 16,000 and 18,000 Story #2 Suppose you found an investment that earns 8.0% each year. Suppose you invest 25,000 dollars at the end of year two. How many dollars will you have' at the end of year five? A Between 25,000 and 28,000 B Between 28,000 and 29.000 C Between 29,000 and 30,000 D Between 30.000 and 32.000 Story #3 Suppose you found an investment that earns 8.0% each year. Suppose you invest 12,000 dollars today. Suppose you also invest 25,000 dollars at the end of year two. How many dollars will you have at the end of year five? A Between 39,000 and 42,000 B Between 42,000 and 44,300 C Between 44,300 and 46,400 . D Between 46,400 and 50.000

Answers

You will have between $46,400 and $50,000 at the end of year five. The correct answer is D.

In Story #1, if you invest $12,000 today at an annual rate of 8.0% for five years, you can calculate the future value using the compound interest formula:

Future Value = Principal * (1 + Rate)^Time

Future Value = $12,000 * (1 + 0.08)^5 = $17,408.64

Therefore, you will have between $17,000 and $18,000 at the end of year five. The correct answer is D.

In Story #2, if you invest $25,000 at the end of year two at an annual rate of 8.0% for three years, you can calculate the future value using the compound interest formula:

Future Value = Principal * (1 + Rate)^Time

Future Value = $25,000 * (1 + 0.08)^3 = $30,240

Therefore, you will have between $30,000 and $32,000 at the end of year five. The correct answer is D.

In Story #3, if you invest $12,000 today and $25,000 at the end of year two at an annual rate of 8.0% for five years, you can calculate the future value for each investment and then add them together:

Future Value of $12,000 = $12,000 * (1 + 0.08)^5 = $17,408.64

Future Value of $25,000 = $25,000 * (1 + 0.08)^3 = $30,240

Total Future Value = $17,408.64 + $30,240 = $47,648.64

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If you spend more in a month than is expected in your budget, what are your two options?

Answers

Answer:

It's hard to define how much should be left over each month after paying all your personal finances as they are different for everyone. But to generalize it, the 50/20/30 rule is applicable to most of us. According to this rule, up to 50% of your income goes to fixed spending, 20% would go to savings.

Explanation:

If you focus on the present now, instead of focusing on your future concerns, you will be able to __________.

a. Gain more enjoyment from your leisure time
b. Avoid doing more work than necessary
c. Create a feeling of control in your life
d. All of the above

Answers

D makes sense to question

In the case when we focus on the present so rather than focusing it we have to gain, avoid excess work, and control the feeling of control.

Importance of focus on the present:

If we focus on the present rather than thinking of the future so automatically the present, as well as the future, will get better.

Due to this, we will be able to do the enjoyment arising from the leisure time, avoiding excess work, and developed a feeling for control in the life.

Hence, the option d is correct.

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Pete, a human resource intern, was given an assignment by his manager that meant he must obtain information from other departments to complete it, but some departments refused to share information with an intern. Pete was frustrated because he did not have the power to get the information he needed. In the context of this situation, Pete's manager made the mistake of

Answers

Answer:

assigning responsibility without delegating adequate authority.

Explanation:

Since in the situation it is given that the some department deny to share the information with an intern due to which pete got frustated so here the manager of the pete should done the mistake of responsibility assigning that should be without delegating to the adqequate authority

So as per the given situation, the above statement should be the answer

A person's cognitive biases are MOST likely to affect what?

Question 1 options:

how their brains filter information


whether they use email or instant messaging


how much money they make


what kind of jargon they use

Question 2 (1 point)
Which of these is a secondary emotion?

Question 2 options:

fear


jealousy


anger


sadness

Question 3 (1 point)
Every afternoon at one o'clock, the air conditioner in Emilio's office turns on to lower the temperature by five degrees. Emilio finds it way too cold and it distracts him from his work. In this case, which element is affecting his perception and emotions?

Question 3 options:

culture


personality


physical environment


social media

Question 4 (1 point)
Hotaru is from Japan, where it is very common for multiple generations to live together. She is not judgmental of a 25-year-old man who lives with his parents because of her what?

Question 4 options:

physical environment


personality


culture


age

Question 5 (1 point)
Danielle tends to roll her eyes when listening to her little sister tell a story. What step should she take to increase her emotional awareness to address this issue?

Question 5 options:

consider her own feelings


monitor her facial expressions


operate on trust


be more empathetic

Answers

A person's cognitive biases are most likely to affect: A. how their brains filter information.An example of a secondary emotion is: B. jealousy.In this case, the element which is affecting his perception and emotions is: C. physical environment.Horatu from Japan is not judgmental of a 25-year-old man who lives with his parents because of her: C. culture.A step should she take to increase her emotional awareness to address this issue is: A. consider her own feelings.

What is framing effect?

In Psychology, framing effect can be defined as a cognitive bias wherein a person's choice from a group of options is primarily influenced by the positive or negative connotations pertaining to the options that are available.

What is cultural diversity?

Cultural diversity can be defined as an existence of cultural variety and cultural differences due to the presence of several ethnic groups that are living within a society.

In this context, we can logically deduce that some examples of distinctive cultural characteristics that differentiate groups are:

ReligionNational originAgeLanguage

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what are the basic requirements to become entrepreneur?Mention them​

Answers

Answer:

Most entrepreneurs start their career with a business bachelor's degree or a specific bachelor's in entrepreneurship and then nourish their skills in an MBA program. In MBA programs, students are motivated to use their creative potential as they learn to build ventures.

Explanation:

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the second most time spent aside from removing impediments on a daily basis is

Answers

The second most time spent aside from removing impediments on a daily basis is managing stakeholder relationships.

Stakeholder management is a crucial aspect of project management. Successful stakeholder management can help mitigate project risks, ensure project success, and improve organizational performance.

Stakeholders are individuals or groups who have a vested interest in the project and are impacted by the project outcome. Stakeholders include the project team, project sponsors, senior management, customers, suppliers, partners, regulators, and other interested parties. Stakeholder management activities involve identifying and analyzing stakeholders, determining their needs and expectations, developing strategies to manage them, and communicating with them. Effective stakeholder management can help ensure project success, minimize project risks, and improve organizational performance. Stakeholder management is an ongoing process throughout the project life cycle.

Stakeholder relationships are professional connections that businesses make with individuals or groups that are interested in their decisions and activities. Employees, investors, and suppliers are all examples of stakeholders who want a company to succeed because they can profit from it.

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Which of the following leadership theories offers answers about whether there is an optimism way for leaders to adjust their behaviors with different followers in which factors should the leader base his behavior on?

Answers

Answer:

path-goal theory

Explanation:

The path-goal theory is one that gives the leader the possibility to adapt his behavior according to individual and collective needs in the work environment. This theory aims to ensure that the leader recognizes the needs of each employee and indicates the path necessary to achieve the objectives and goals of the organization.

This model aims to achieve greater motivation and productivity with a leadership model based on the fulfillment of the employee's individual expectations in relation to their work.

Coca-Cola has a variety of strategic business units (SBUs) in its beverage business. Glaceau Vitamin Water is in a high-growth market due to customer trends away from carbonated beverages. However, Coca-Cola has a low market share of the bottled water segment. Thus, Glaceau Vitamin Water would be classified as a _______ according to the Boston Consulting Group model.

Answers

Answer:

"Problem child" is the correct answer.

Explanation:

Throughout a highly expanding economy, but with a different business model, the compounds would be considered problematic children or questioning indentations.Glaceau water seems to be in a highly international audience with a large affinity to expansion. Nevertheless, throughout the plastic bottles category, Coca-Cola possesses a slow growth rate.

Thus the above is the correct answer.

Which type of strategy is being used if a company offers a product at a lower cost than its competitors?

Answers

Offering a product at a lower cost than its competitors is an example of a cost leadership strategy.

One instance of a cost leadership approach is providing a product at a cheaper price than its rivals. By manufacturing goods or services at a cheaper cost than rivals, this tactic seeks to provide the firm a competitive edge so that it may charge less or make more money. Cost leadership may be attained in a number of ways, including through economies of scale, productive manufacturing methods, or lower input costs. It's crucial to remember that a cost leadership approach could not work if rivals can match or undercut the lower pricing or if cost-cutting efforts result in a decrease in product quality.

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The economic order quantity (EOQ) refers to the idedal quantity to a. sale b. purchase c. produce d. stock

Answers

The economic order quantity (EOQ) refers to the ideal quantity to purchase.

The economic order quantity (EOQ) is a concept in inventory management that determines the optimal quantity of goods or materials that a business should order or replenish at a given time. The objective of EOQ is to minimize inventory costs while ensuring that there is an adequate supply to meet demand.

The EOQ calculation takes into account factors such as ordering costs, holding or carrying costs, and the rate of demand. By finding the optimal order quantity, a company can strike a balance between the costs of holding excess inventory and the costs associated with frequent ordering or stockouts.

While the other options listed (sale, produce, and stock) are also important considerations in business operations, the primary focus of the EOQ is on determining the ideal quantity to purchase. By finding the right balance in purchasing quantities, businesses can optimize their inventory management, reduce costs, and ensure efficient supply chain operations.

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How does industrial education affect industries?​

Answers

Answer:

Industrial education will help student to know and understand industry demand. ... First, adaptability is a skill will help students to know and understand industry work and world, such as how to use technology, follow all industry SOP, all new chalanges industry, etc. Second, communication is an important skills to had.

The person before me already gave an answer so what’s the point if I do it

What is Requirement Engineering? Explain the Crucial Process steps of requirement engineering. Describe about the types of Requirement in detail.

b. Describe Software Requirements Specification (SRS) Document?

Answers

Requirement engineering involves gathering, analyzing, documenting, and managing software requirements. The Software Requirements Specification (SRS) document details the system requirements and serves as a communication tool.

Requirement engineering is the process of defining, documenting, and managing requirements for a software system. It involves understanding and eliciting the needs of stakeholders, analyzing and prioritizing requirements, and documenting them in a clear and unambiguous manner.

The crucial process steps of requirement engineering are as follows

Requirements Elicitation: Gathering information from stakeholders to identify their needs and expectations for the software system.

Requirements Analysis: Analyzing and refining the collected requirements to ensure they are complete, consistent, and feasible.

Requirements Specification: Documenting the requirements in a structured manner, including functional and non-functional requirements, constraints, and assumptions.

Requirements Validation: Evaluating the requirements to ensure they are accurate, consistent, and meet the needs of the stakeholders.

Requirements Management: Managing and controlling changes to requirements throughout the software development lifecycle.

Types of requirements in detail

Functional Requirements: These describe the specific functionalities and features that the software system should perform. They outline the desired behavior and interactions with users and other system components.

Non-functional Requirements: These specify the quality attributes of the software system, such as performance, reliability, usability, security, and scalability. They focus on how the system should perform rather than what it should do.

User Requirements: These represent the needs and expectations of end-users. They are expressed in a user-friendly language and describe the system's behavior from a user's perspective.

System Requirements: These define the technical aspects of the software system, including hardware and software requirements, interfaces, and performance characteristics.

Business Requirements: These capture the high-level objectives and goals of the organization that the software system is intended to support. They align the software development with the overall business strategy.

Software Requirements Specification (SRS) document

The SRS document is a comprehensive description of the software system's requirements. It provides a detailed overview of the system's features, functions, constraints, and interfaces. The SRS document serves as a communication tool between stakeholders, developers, and testers, ensuring a shared understanding of the software requirements.

It typically includes sections like introduction, system overview, functional and non-functional requirements, user interfaces, system architecture, and testing requirements. The SRS document acts as a baseline for the development team and guides the entire software development process.

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most stock exchanges today use electronic trading

Answers

True

(Not sure what was the question about but I’m guessing it’s a true/false?)

hope this helps :)

In the following pictograph, how many books has Group 3 read?



18
25
15
12

Answers

Answer:

15 is the answer you are looking

what would happen to a monthly payment if the intrest rate increased

Answers

Answer:Your interest rate and the monthly payment will remain the same

Explanation:If you have a fixed-rate mortgage, the rising rate will have no impact on your loan: Your interest rate and the monthly payment will remain the same.

The monthly payment would increase if the interest rate is increased.

The monthly payment is the amount a person has to pay every month over the time period of the loan to pay off the loan. Interest is the additional amount a lender has to pay along with the principal amount when they avail a loan.

A loan with a higher interest rate means that the person will have to pay back more money and hence higher monthly payments as compared to someone who has a lower rate interest rate for the same amount and for the same time period.

For example, if you borrow $200 with a 5% interest rate you will have to pay back a total of $210 and if this is over 10 months then you will have to pay $21 every month. Now say you borrow the same amount for the same time period but with a 10% interest rate, then you will have to pay back a total of $220 and this means your monthly payment will be $21. Therefore monthly payment increases with the interest rate.

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