Q: Increasing interest expense will have what effect on EBIT?
A: EBIT stands for Earnings before Interest and Tax, the amount earned by the company from the…
Q: How can we find the present worth of any uneven stream of payments?
A: The question is based on the concept of present value of uneven cash flow
Q: When are credits increases? When are credits decreases?
A:
Q: The value of a series of payments is similar to the maturity value in a compounding transaction.…
A: Compound interest: It shall be measured on the principal sum and also on the accrued interest of…
Q: Does the Compounding occur at a different rate than that at which payments are made?
A: No, as compounding occurs at the same rate as compared to that at which payments are made.
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: What are the most frequent uses of contingent payments?
A: A contingent payment is a mechanism used in M&A whereby, in addition to an upfront payment,…
Q: Assuming no changes in other variables, which of the following would decrease ROA? B . A decrease in…
A: The Return on assets (ROA) shows just how lucrative a business is with respect to its total assets.
Q: Explain Payment Caps and Negative Amortization?
A: Payment Caps: A payment cap is a customer protection that bounds the amount that your monthly…
Q: Write an equation for determining the value of the series of end-of-period payments?
A: Formula:
Q: What is the meaning of Installment Sales?
A: Installment sale: It is one of a few potential income acknowledgments approaches under the Generally…
Q: What is issue of payments deficits
A: Introduction:- payment of deficit means:- Country imports more goods, services, and capital than…
Q: How is Compound Interest calculated?
A: Compound interest refers to the addition of interest amount to the principal. The concept of…
Q: How is the receivables turnover ratio measured? What does this ratio indicate? Is a higher or lower…
A: Receivables turnover ratio is measured by dividing net credit sales of a period by average accounts…
Q: Explain the term refundable deposits.
A:
Q: what is the formula for compounding interest?
A: Compound interest can be defined as the interest earned on principal amount and on all previous…
Q: How can we determine the amount of a periodic payment?
A: The amount of periodic payment is determined using the following formula:
Q: ired to remit this payment?
A: As per IRS ,if the due date for payment of federal tax falls on Saturday , Sunday or national…
Q: ermine the amount of each payment?
A: Loan: The loan is a value that is borrowed from external sources like banks and this amount is…
Q: How can we determine the borrowing rate of return?
A: The borrowing rate of return is the return that is charged on the borrowings made by the firms or…
Q: What are the features of the discounted payback period
A: DPP is the total time taken for the initial amount to equal to be the amount of discounted value of…
Q: What are the essential differences among demand deposits, savings deposits, and time deposits?
A: Deposits refers to the sum of money that are deposited with banks or any financial institution.…
Q: Whenever payment and compounding periods differ from each other, it is recommended to compute the…
A: The effective annual interest rate is the real return for a bank account or other interest paid…
Q: Give differences between Revaluation account and Realisation account.
A: Revaluation account: The revaluation account is a nominal account opened to assess the values of the…
Q: Depending on the frequency of compounding, how can the effective interestearned (or paid by the…
A: The basic difference between compounding and simple interest is that simple interest is only offered…
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: What is the internal rate of return? How is it used? How does it relate to the concept of compound…
A: The internal rate of return (IRR) is a capital budgeting metric used to gauge the benefit of…
Q: Is the difference in accumulated interest be1wcen continuous compounding and daily compounding…
A: Compounding - In this method the interest is calculated on the balance at the end of each…
Q: Does Compounding Occur at a Different Rate than that at which payments are made? How?
A: Answer: The answer is no, because the compounding takes place at the same rate as that at which…
Q: What would be the value the payment?
A: In this question, we will use the excel function for calculating the maturity value of loan from the…
Q: How would an increase in the interest rate or a decrease in the number of periods until the payment…
A: Interest rate is defined as an amount of an interest due per period as the proportion of amount,…
Q: Differences between Accrued Interest and Payments?
A: Answer: An accrued interest is nothing but interest on a loan or an interest on bond that has been…
Q: The process that determines the present value of a single payment or stream of payments to be…
A: Discounting : Discounting determines how much will be the worth of money if it is received today…
Q: Which of the following would be the correct adjustment if there was an increase in an accrual?
A: as per the accounting principal and practice ; Every DEBIT has an equal Credit. Every Debit are…
Q: Explain Amortization Schedules and Callable Loans?
A: An amortization plan or schedule may be a total table of periodic advance installments, appearing…
Q: What is accruals?
A: The answer is provided as follows:
Q: Suppose that all possible types of perpetuities (differentiated in payment starting periods and…
A: A perpetual annuity is a policy that you pay indefinitely. In finance, eternity is a constant flow…
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: What are out of period debts? Explain?
A: Out of Period debts: It is also known as time barred debts.
Q: What is the cost of accrued liabilities? If accruals have such a low cost, why don’tfirms use them…
A: An accrued liability refers to an expense a business has incurred during a specific period but has…
Do the Compounding Occurs More Frequently than payments are made?
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- What are the most frequent uses of contingent payments?Depending on the frequency of compounding, how can the effective interestearned (or paid by the borrower) can differ significantly from the APR?Whenever payment and compounding periods differ from each other, it is recommended to compute the effective interest rate per payment period.Give reasons why?
- How are refundable deposits and customer advances similar? How do they differ?What are annuities received? Also, how does the calculation of expected return and the calculation of inclusion amount for annuities received work? Please give me some examples/Explain Payment Caps and Negative Amortization?