Define the term recovery allowance percentages?

Q: What is the purpose of an allowance for uncollectibles and why is it important?

A: Accounts receivable is the current asset and the amount that is not received yet from the customer…

Q: Define Discount Rate.

A: A discount rate is rate which is used to bring future value of cash flow to the present value.It is…

Q: Are there any alternatives to the allowance method?

A: The alternative to the allowance method is the direct write-off method, under which bad debts are…

Q: What procedures are followed in the allocation of a discount?

A: When a sale or a purchase is made for an amount  that is less than the sales price, the differences…

Q: Explain the difference between defined-benefit and defined-contribution plans?

A: Solution:- Pension plans are to provide a security to the retiring employees after their retirement.…

Q: of computing vat payable

A: VAT refers to the type of tax imposed by the government over the sale of goods and services.

Q: pay back period?

A: Pay back period = Number of years fully covered + (Remaining part of investment to be covered/Next…

Q: What is interest coverage ratio?

A: The interest coverage ratio is the ratio which shows the ability of the company to pay the interest…

Q: Explain the term Present Value of Perpetuities with an example?

A: Present value is the current value of a cash flow that can be occurred in future. Perpetuity is an…

Q: reimbursement plan

A: Those Expenses will be reimbursed by Business to their Employees which are related to business. In…

Q: how much is the Allowance for Overvaluation after adjustment?

A: Given that, Allowance for overvaluation = P157,500 Shippment from home office = 120% of cost…

Q: Define the term premium?

A: Premium in finance has several definitions, with the initiative being the overall cost of purchasing…

Q: Differentiate between the accumulated benefit obligation and the projected benefit obligation.

A: ABO (Accumulated benefit obligation) and PBO (Projected benefit obligation) are similar in most of…

Q: What are compensated absences?

A: Compensated absences are the absences or leaves for which the employees will be paid. Example of…

Q: Define the term prepaid insurance.

A: Prepaid expenses: Advance payment for future expenses is called as prepaid expenses. These prepaid…

Q: How is the payback period determined?

A:

Q: In what way is compensation similar to payment? Explain each by giving examples or cases that you…

A: Compensation :  It a payment given in exchange of services.  It is a form of a payment. It can only…

Q: What is the purpose of the valuation allowance?

A: purpose of the valuation allowance are as follows

Q: What is Inflation Premium?

A: Inflation premium: An inflation premium is the piece of the common interest rate coming about…

Q: Why GAAP requires the allowance method

A: while accounting the uncollectible accounts  in the books of accounts GAAP requires the allowance…

Q: How is the Compounding Period equal to Payment Period? Give an example?

A: The annual payment of $7,000 and compounding is to done semi-annually then compounding period 2 will…

Q: Identify five differences between reserve and allowance?

A: Identify five differences between reserve and allowance:Allowance for Doubtful Accounts: This is a…

Q: Describe the Depreciation Allowance under Inflation?

A: Depreciation: Depreciation is an accounting method to calculate the value of a tangible asset during…

Q: What is a deferral expense?

A: Word "Deferral" means the postponement of something happening.

Q: What is the proposal’s internal rate ofreturn?

A: The internal rate of return is a metric used in financial analysis to estimate the profitability of…

Q: Calculate rebate on bills discounted?

A: When a customer who has bills recievable is facing liquidity issue he can approach bank inroder to…

Q: What is the difference between the APBO and the EPBO? What are the components of postretirement…

A: Difference between the APBO and the EPBO:Expected pension benefit obligation (EPBO): The amount of…

Q: What is the discounting process?

A: Discounting: It is the process where the bill is given to a bank to get the bill discounted before…

Q: How much is the VAT Payable?

A: VAT payable is the amount of vat tax which is to be paid to the tax authority of the country and…

Q: The price per unit of insurance is called the O premium. O loss adjustment expense. O rate. O loss…

A: Premium is the amount the insured needs to pay the insurer for covering any losses that the insured…

Q: What is the present worth of a uniform series payment?

A: The present worth is the value of an asset at present considering an assumed discount rate, which…

Q: Define the term Depreciation Allowance under Inflation?

A: Inside these laws of unique cost depreciation, the absolute estimation of the duty exclusions in…

Q: What is allowance method?

A: Definition:   Allowance method of accounting for uncollectible accounts: This is the accounting…

Q: Describe the conditions that would make the use of advance-discounts appropriate.

A: Discount means a selling of goods or service below the price of goods. This reduction in price is…

Q: What is the difference between a contribution- and a benefit-orientedretirement plan?

A: Defined contribution plan is a retirement plan which gives an option for the employees to grow tax…

Q: Define discount interest

A: Introduction: Usually, interest is the sum charged over an amount of time by the borrower for the…

Q: What is surcharge?

A: surcharge is an additional or extra charge or tax charged on the cost of goods or service more than…

Q: What is the difference between the regularand discounted payback periods?

A: The Regular Payback period is one of the capital budgeting techniques. It refers to the time period…

Q: Define the term Non-comparable Compounding and Payment periods?

A: The question is based on the concept of interest rate calculation, which depend on the compounding…

Q: Determine the components of postretirement benefit expense

A: Post-retirement benefit expense:   This is an expense to the employer-paid as compensation after the…

Q: Define each term and state three characteristics for each term a- Pay-back period b- Discounted…

A: a. Pay-back period: The payback period is the length of time required to repay the cost of an…

Q: What is premium on forward rate?

A: A forward rate is referred as an interest rate which is applicable on financial transactions which…

Q: Define Deferred annuity.

A:

Q: What is Accumulated benefit obligation?

A: