In what situations is interest capitalized?

Q: How much is legal capital?

A: it's the nominal value of all the accumulative shares issued by the corporate. for example, if a…

Q: How can we use special financial functions to determine the total interest?

A: Financial functions have made financial calculations easy using excel, they make you calculate the…

Q: What does the formula developed for calculating compound interest express?

A: Answer: Compound interest is nothing but interest earned on interest. In case of simple interest…

Q: Can you explain what is Principles of Interest Rate Structure? and how do you do it

A: We assume the question refers to the Term Structure of Interest Rates.  Term structure describes the…

Q: How to calculate Present Value Interest Factors?

A: PVIF is known as Present Value Interest Factor. PVIF refers to a factor that is very useful in…

Q: Identify the MARR (or external interest rate)?

A: A minimum acceptable rate of return (MARR) is the all-out advantage that a speculator wants to pick…

Q: What is a capitalized interest? Give three examples?

A: Capitalized interest:Interest Cost incurred to finance the construction of a long-term construction…

Q: In what situations is interest capitalized rather than expensed?

A: Capitalized interest is the cost of the funds used to finance the construction of a long term asset…

Q: How to Calculate Compound Interest Factors and explain with example?

A: It is interest ascertained based on the starting principal and frequently contains all the collected…

Q: Are there any particular elements to interest-bearing transactions

A: There any particular elements to interest-bearing transactions will be explained:

Q: Define Interest Capitalization.

A: Interest Expense: The cost of debt which is incurred during a particular accounting period is called…

Q: (d) What are the three steps we use to calculate total non-controlling interest?

A: Non- controlling interest refers to minority interest. It is an ownership interest wherein a…

Q: Is taxable interest income generated via active or passive investments, or through a portfolio of…

A: The Answer

Q: explain whether true or false : The interest rate parity does hold in realty

A: Interest rate parity is an releationship between spot exchange rate and the forward exchane rate…

Q: Where can authoritative IFRS be found related to investments?

A: International Financial Reporting Standards (IFRS):   International Financial Reporting Standards is…

Q: What is risks and interest rate

A: Risks and interest rate are tied together in case of fixed income instruments like bonds.

Q: What are the components of an interest rate?

A: Interest rate refers to the net charges that a lender makes on the principal amount provided to the…

Q: Taxable interest income is active or passive or portfolio ?

A: Active income is an income that is earned by performing a service. Active income includes salaries,…

Q: How is Compound Interest calculated?

A: Compound interest refers to the addition of interest amount to the principal. The concept of…

Q: What are the common internal controls in place for capital expenditure cycle? with explanations

A: Internal control is an important part of every organization. It helps in maintaining the efficiency…

Q: What are spontaneous liabilities?

A: spontanous liabilities

Q: Which types of investments are valued at amortized cost? Explain the rationale for this accounting.

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: What is the initial investment plus interest?

A: The total of initial investment and interest will give the total value or worth of the investment…

Q: When the fair value of plan assets is multiplied with a discount rate, an interest expense arise.…

A: There is mainly two types of accounts which are kept in the defined benefit plan.  One is Defined…

Q: What are the various forms of interest-bearing transactions

A: The various forms of interest-bearing transactions of explanation:

Q: What do we mean by covered interest arbitrage parity? Explain in detail by a diagram.

A: Covered interest arbitrage: It is relationship between forward premium and interest rates. If…

Q: What will be the Simultaneous Effects of Real Market Forces and Interest Rates on Property Values?a

A: There are various factors which affect the long term trends and short term trends in values of…

Q: how is it possible that the avoidable interest can exceed the actual interest

A: Interest Cost: The cost charged on the borrowings financed by the lender to the company is known as…

Q: What is the purpose of a fair value hedge?

A:

Q: What are the advantages and disadvantages of a fixed principal, fixed interestloan?

A: Fixed interest rate loans have a fixed rate of interest that does not change over the period of the…

Q: What is another way of saying "Interest earned on interest"?

A: "Interest earned on interest" means the interest earned on the interest amount which was earned on…

Q: Why is premium on issue of debentures considered a capital profit?

A: Debenture: Debenture is a type of debt instrument and it is unsecured by collateral. Since,…

Q: What is the three-step process used to determine the amount of interest capitalized?

A:

Q: hat is the difference between simple interest and compound interest?

A: The difference between simple interest and compound interest is as follows-

Q: What does the term noncontrolling interest mean?

A: This term is generally used when consolidated statement is prepared by the parent entity. There are…

Q: The difference between simple interest and compound interest?

A: There is various difference between simple and compound interest.  Few of them are as follows-

Q: What is Interest Risk and Cash Flow Risk?

A: Risk exists in all business operations and transactions however the business should take actions to…

Q: What is the relationship between a discount rate (or IRR) and a capitalization rate? What causes…

A: Introduction: The discount rate is nothing but a rate that reduces potential cash flows in order to…

Q: What are the methods of calculating Interest?

A: Interest is an additional amount received on a deposited amount for a deposited period. It increases…

Q: How is NPW used as a Function of Interest Rate?

A: Present value computes the existing value of future benefits by discounting future worth with a…

Q: What are the basic classes of "traditional investments

A: Traditional Investments: Traditional assets are those the ordinary investor would imagine upon…

Q: What are the strategies of deferring capital gains, an exchange may be used in conjunction with…

A: The 1031 Exchange permits Associate in Nursing capitalist to sell assets or property and…

Types of Money Market Instruments