Define Weighted-average interest method.

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: How do the Internal-Rate-of-Return Criterion relate to the PW Analysis?

A: Capital budgeting:   It is the process in which the business uses to determine which proposed fixed…

Q: Define the term Current ratio with example.

A: Ratio analysis: It is the financial analysis tool for measuring the profitability, liquidity,…

Q: Define the term recovery allowance percentages?

A: Tax based depreciation rates are provided by the IRS and are called MACRS which is the modified…

Q: Define actuarial rate of return

A: Definition: Actuarial rate of return is the expected value of losses of an insurance company that…

Q: Define vector error correction model for the two interest rates?

A: Vector correlation model is used to determine the direction of causality between two variables if…

Q: Compare and contrast dollar returns and rates of return.

A: The returns from any investment can be calculated in terms of value (amount terms) or percentages.

Q: Define Monetary unit assumption.

A: Money measurement assumptions: As per the money measurement assumptions, only quantifiable…

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: Which of the two methods of estamting uncollectable provides   for the most accurate estimates of…

A: Allowance method It is a method for accounting bad debt expense, where uncollectible accounts…

Q: How is the Current Ratio calculated?

A:

Q: What are the benefits of interest tables?

A: The question is based on the concept of interest table.

Q: Which of the following is true about rates?

A: Total Rate of Return: The total rate is the real rate of return made on an investment over a period…

Q: What are the Interest Tables?

A: Tables are prepared to provide the precise information generally the quantitative information in…

Q: Define compound interest

A: Compound interest: Compound interest is the accumulation of interest to the principal amount of a…

Q: Define Valuation allowance

A: Valuation allowances are reserves created, which can set off deferred tax assets. If it is probable…

Q: Describe in detail the Stochastic Discount Factor (SDF)and its components.

A: Stochastic discount factor is defined as the concept, which has the combination of the financial…

Q: Describe factoring of receivables.

A: Definition:   Factoring: A factoring is a financial transaction in which a company sells its…

Q: Explain the calculation procedures for and significance of the current ratio.

A: The ratio analysis helps to analyze the financial statements of the business including elements of…

Q: Define average return

A: The formula to compute average return as follows:

Q: Illustrate the calculation of the standard deviation of returns?

A: Standard deviation refers to a measure of variation or dispersion of a set of values. We can…

Q: What is current ratio and how is it calculated?

A: Liquidity ratio:Liquidity or solvency ratio helps to measure the ability of the concern to meet its…

Q: Describe the Internal-Rate-of-Return Criterion?

A: Internal rate of return (IRR) is defined as the rate of discount at which the NPV of human capital…

Q: Define target payout ratio

A: SOLUTION:- A target payout ratio is a degree of the proportion of a company's profits it would want…

Q: Define current ratio.

A: Ratio analysis: The analysis of a company using the financial ratios and comparing its trends and…

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: Explain four aspects of rate-of-return analysis?

A: The return of return is the return on investment made when the time value cashflows turns to net…

Q: How is the standard deviation of returns calculated?

A: Standard deviation is ascertained as follows: The mean worth is dictated by including all the…

Q: What is net interest? Identify the elements of net interest and explain how they are computed.

A: Net interest- Net interest typically is the difference between the interest earned by the…

Q: ctive interest rate

A: The objective is to find the name of the interest that is defined as the interest paid on the…

Q: differences between Weighted Average and FIFO methods

A: Weighted Average and FIFO methods are used to value inventory of business.

Q: Describe the Incremental B/C-Ratio Analysis?

A: Benefit cost analysis: Benefit cost analysis refers to analyzing the desirability of project where…

Q: When it comes to calculating interest, what procedures are used?

A: The Answer:

Q: Define discount interest

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

Q: how to calculate FLEV and Spread and Noncontorlling interest ratio

A: Financial Leverage is a financial ratio that represents the relationship between the total debt and…

Q: analyze how the current rate method and the temporal method aff ect fi nancial statementsand ratios

A: The question is based on the concept of different pricing or cost methods used in accounting process…

Q: Current ratio formula?

A: Ratio analysis is the method of checking the company's operational efficiency, liquidity, and…

Q: Describe the two basic differences between the weighted average and the FIFO method.

A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…

Q: Define the term average collection period?

A: Accounts receivable turnover analyzes the number of times accounts receivables is collected and…

Q: What is meant by the current ratio?

A: The current ratio is liquidity which measures the ability of the enterprise to pay its short-term…

Q: Define Pretax margin

A: The pretax margin is a ratio to evaluate the operational efficiency of a firm. It measures the…

Q: Distinguish between Current ratio and Quick ratio?

A: Ratio analysis: It refers to the quantitative technique of financial analysis that allows gaining an…

Q: How to calculate current ratio?

A: The current ratio is a financial ratio that measures whether or not a firm has enough resources to…

Q: What are the four aspects of rate-of-return analysis?

A: Rate of return analysis tells the rate of return which a investment can give. It carefully analyse…