Interest expense
Q: Use the compound interest formula to compute the total amount of accumulated and interest earned.
A: Compound interest also called interest on interest. It is the addition of interest in the principal…
Q: Answer the following questions correctly. a. The interest is computed on the principal and on the…
A: Note: I am suppose to provide solution of first question.Please repost the remaining questions…
Q: Which of the following is a contra-liability account? a. Taxes Payable b. Accumulated Amortization…
A: Contra liability account is one that is debited for the explicit purpose of offsetting a credit to…
Q: How will the lender of the promissory note record the note on its books? as an expense as revenue…
A: Revenue: This is the income of a firm during an accounting period. The income is recognized as and…
Q: Rules of the internal revenue service concerning the deductibility of points on a mortgage DO NOT…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: how are the origination fees borne by the borrower accounted for in relation to the initial…
A: External financing is the outsourcing of funds and refers to investment or financing provided by…
Q: Effective interest amortization method uses which of the following rates to determine interest…
A: Under the effective interest method, the interest is calculated as yield to maturity multiplied by…
Q: which of the followings is considered as long term liability :Select one .a mortgage payable .b…
A: a. mortgage payable is the right answer. Other option are incorrect as they are short term…
Q: __ is the interest earned at the end of the alloted time between the lender and the borrower.
A: Step 1 Interest is calculated as a percentage of the loan amount (or deposit) and is paid to the…
Q: For assets acquired on credit or by installment, the cost or fair value is equal to: A. cash…
A: The fixed assets are the assets acquired by the business to use for long run.
Q: Which of the following is an accrued liability? * Unearned subscriptions revenue Current portion of…
A: Liabilities that are recorded in the balance sheet are of two types they are - Current liabilities.…
Q: Which of the following would be considered a long-term liability? a. interest payable b.…
A: Analysis of options a. interest payable Since interest will be paid within 12 months or normal cycle…
Q: If interest-bearing obligations are issued between interest payment dates, the accrued interest sold
A: Interest-bearing obligation- It refers to a Debt instrument issued by the company, where repayments…
Q: A loan borrowed by an individual secured against the personal property is. a. Character b.…
A: The provided options are known as the main Cs that a lender considers when providing a loan.…
Q: The effect of a lender agreeing to give the borrowing entity a grace period after the reporting…
A: PAS 1, deals with the situations arising after the breach of loan covenants and provides a grace…
Q: The amortization of premium on notes receivable is a. deduction from accrued interest receivable b.…
A: The bonds are issued at premium when market rate is lower than the coupon rate of bonds.
Q: Perpetual debt instruments a. Are compound financial instruments b. Are derivative financial…
A: Perpetual debt instruments seem to be debt funds that do not have an expiration date. The issuer…
Q: An installment note is a liability requiring a series of payments to the lender. True or False True…
A: Introduction: An instalment note is a legal obligation or liability that requires the lender to…
Q: When the amount of interest accrued shown in the adjustments, then it has to be: a. Deducted from…
A: Accrual system of accounting says that every thing which is accrued has to be provided in books of…
Q: The discount allowed to a debtor for early payment is
A: Debtors :- Debtors are the person to whom goods and services are sold on credit.
Q: perlod of a loan or investment
A: Compounding period and period of loan are interrelated to each other.
Q: ayment made by the lessee to the lessor? A. None of the above B. If the advance payment representing…
A: A lessee is someone who rents property or land from a lessor. The lessee, sometimes known as the…
Q: Which of the following is not a liability?a. Income taxes payableb. Accrued warranties payablec.…
A: Liability are the obligations which are to be paid in current period or in future.
Q: Which of the following items of interest expense may be deducted from gross income? Interest…
A: Interest expense will be allowed as a deduction if such Expense is incurred in the ordinary course…
Q: Rent collected in advance shall be taxable when earned.
A: Meaning of Rent Received in Advance Rent Received in Advance is the amount of rent which is received…
Q: ation of debt income from qualifi
A: The Qualified Principal Residence exclusion enables a taxpayer to deduct up to $2,000,000 of the…
Q: A(n) is where the debtor delivers personal property to the creditor to secure the debt. (one word)
A: bailment represent a legal relationship where physical position of the person property transferred…
Q: 17-Which of the following is a contra-liability account? a. Accumulated Amortization b. Taxes…
A: Conntra liability account are those liabilities where the balance is debit balance.
Q: Rebate on bills discounted is A liability Actual income Income received in advance An accrued income
A: Statement of financial position or balance sheet is one of a financial statement which helps…
Q: Computation and Calculation on how they get - Interest Received - Interest Income - Discount…
A: Bond Amortization - It is a principal paid regularly, along with its interest expenses over the life…
Q: Mezzanine Debt is generally collateralized by O A first deed of trust O A high rate of interest O A…
A: Mezzanine debt is a financing instrument which is a hybrid of debt and equity. It has higher risk…
Q: How do we record the interest payment (provide examples for both premium and discount amortization),…
A: Bonds are a form of debt or loan taken by the company, on which regular interest payments needs to…
Q: Compound interest is interest on any past unpaid interest accrued to date. calculated by multiplying…
A: Solution: Compound interest is interest on the original principal plus any past unpaid accrued…
Q: True or false Simple interest is calculated on the principal and any accrued interest
A: Interest: Interest is the cost of borrowing money-, in other words Interest is the amount charged…
Q: Which of the following transactions would not result in a temporary difference between pretax…
A: Correct option is D. Payment of premiums for life insurance
Q: If there is evidence that an impairment loss on loans and receivables has been incurred, the amount…
A: Impairment Loss = Carrying Value - Recoverable amount Recoverable Amount is higher of the…
Q: ents plus the interest on the remaining loan. What was the amount of the loan? What was the amount…
A: in this problem payment is made by four equal payment plus interest on remaining amount.
Q: Obligation to pay back your monetary debt. What kind of obligation is involve here?
A: Obligation to pay the debt: In the context of financial responsibilities, this refers to any…
Q: The adjustment to be made for provision for doubtful debt is O a. Credit profit and loss account…
A: The provision for doubtful debts is also known bad debts or losses on account receivables.
Q: True or false. Rate of return is the interest earned on the unpaid balance of an amportized loan
A: Rate of return is calculated to ascertain the profit and loss of an investment. It is expressed in…
Q: Choose an example of non-current liability. O a. Interest payable O b. Bonds payable Oc. Wages…
A: Following is the answer to the given question
Q: in.......................all of the interest is paid at end of the term
A: Interest payment refers to the amount that a borrower pays on the loan amount acquired by him for an…
Q: In the amortization of loans, interest must be paid at the beginning of each period calculated on…
A: Loans are amortized or paid off by way of scheduled and periodic regular payments. The payment…
Q: interest expense, which of the following * ?occurs firs Incurring The Interest Expense C Paying The…
A: Accrued interest expense implies interest expense that has been incurred but not yet paid. It is a…
Q: Which of the following is not a liability?
A: Liabilities: Liabilities are referred to as the obligation of the business towards the creditors…
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- What is the correct treatment of advance payment made by the lessee to the lessor? A. None of the above B. If the advance payment representing loan is intended to be applied to unpaid rent, the amount is part of the debtor/lessor’s taxable income at the time of receipt of said amount. C. If the advance payment represents security deposit, the amount is part of the lessor’s taxable income. D. If the advance payment represents loan, the amount is part of the lessor’s taxable income.Which of the following can be deducted as interest expense? Interest on personal debt Interest on debt from a related creditor Imputed interest on capital Interest on assessed tax delinquency ANSWER:Rent collected in advance shall be taxable when earned. Required: True or False
- In the amortization of loans, interest must be paid at the beginning of each period calculated on the balance of the principal amount due (unpaid balance). TRUE OR FALSE?how are the origination fees borne by the borrower accounted for in relation to the initial measurement of a loan receivable a. Added to initial measurement of the loa receivable b. Deducted from the initial measurement of the loan receivable c. Ignored d. Either added to or deducted from the initial measurement of the loean receivable if the origination fees are at leasr 10% of the proncipal amount of the loanIf there is evidence that an impairment loss on loans and receivables has been incurred, the amount of the loss is equal to a.Excess of the principal amount of the loan over its carrying amount. B. Excess of the carrying amount of the loan over the principal amount of the loan. C. Excess of the carrying amount of the loan receivable over the present value of the cash flows related to the loan. D. Excess of the present value of cash flows related to the loan over the carrying amount of the loan receivable.
- For tax purposes where interest expense on margin loan is deductible for investment purposes , can capital gains or increased borrowing be withdrawn somehow or segregated to determine prorated deductibility?Which of the following is a contra-liability account? a. Taxes Payable b. Accumulated Amortization c. Discount on Notes Payable d. Notes PayableTrue or false Simple interest is calculated on the principal and any accrued interest
- The amount borrowed from the financial institution is called: a. Amortization b. Deferred payments c. Amount financed d. Finance chargeSometimes a temporary difference will produce future deductible amounts. Explain what is meant by future deductible amounts. Describe two general situations that have this effect. How are such situations recognized in the financial statements?Loans and receivable should be measured subsequent to initial recognition at * a. Amortized cost using the straight line method b. Fair value c. Fair value plus transaction cost d. Amortized cost using the effective interest method