The term sinking fund is used when we know the sum we need to accumulate and must find the amount of periodic payments necessary to achieve this amount.

Q: Explain how plan assets accumulate to provide retiree benefits and understand therole of the trustee…

A: Pension expenses are used to report an employer’s annual cost for maintaining an employee's pension…

Q: The long-term assets and liabilities are not generally accounted under general funds however it…

A: Long term assets are assets that a company uses in its production process and with a useful life of…

Q: When do the funds earn interest at the MARR?

A: The MARR (Minimum Acceptable Rate of Return), generally referred to as hurdle rate is the lowest or…

Q: Give two examples of capital receipts which are directly added to the capital fund.

A: A capital receipt is a receipt for the business that either create a liability or results in the…

Q: What is the purpose of using the retained funds?

A: After paying the dividends, the company retains the remaining net income which is called addition to…

Q: how long will the fund last?

A: Future value can be referred to as the value of an underlying asset or security at a future date.…

Q: Net Present Value

A: Net Present Value is a method of evaluation of investment alternatives in capital budgeting. This is…

Q: Why a particular fund out of which reimbursement is to be made, makes the instrument unconditional

A: The question is based on the concept of negotiable instruments. A negotiable instrument is a legal…

Q: E.) Is a contractual financial product sold by financial institutions that is designed to accept and…

A: Financial Institution: Financial institutions refers to the business that provides a marketplace for…

Q: What is the purpose of emergency fund?

A: Emergency Fund: An emergency fund is a vital corpus that must be set up in case of unforeseen…

Q: Classify the type of financial formula for the information given. Lump-Sum Problems P A known…

A: The investors are estimating the return and maturity value before making investment in any security.…

Q: What equal series of payments must be paid into a sinking fund in order toaccumulate each given…

A: Here i am the each given amount: (a) $1,700 in 10 years at 8% compounded semiannually when payments…

Q: What is the difference between a permanent fund and a private-purpose trust fund?

A: A private purpose fund refers to trust agreements where a principal or income benefits individuals,…

Q: Which of the following will increase the additional funds needed from external sources?

A: EXTERNAL SOURCES OF FUNDS

Q: Define sinking fund

A: Fund: A fund is a pool of money save for a particular purpose. Those pools can be frequently…

Q: How do the funds grow?

A: The major motive of every investor to grow up their investment and the following are the ways in…

Q: What’s the difference between a call for sinking fund purposes and a refunding call?

A: Sinking fund: A sinking fund is a fund comprising money keep back or saved to settle a debt or bond.…

Q: The following are the properties of the sinking fund formula except: a. Gives uniform annual charge…

A: A sinking fund is a type of fund that is used by individuals or corporations for the purpose of…

Q: Can fund users (borrowers) such as corporations, raise funds through new issues of financial…

A: New issues, whether stocks or bonds, are a way for a firm to raise funds. An initial public offering…

Q: Please describe a special revenue fund you find particularly beneficial.

A: A special revenue fund is a govt account that gathers money for a specific project. Special revenue…

Q: Does a credit balance in the fund balance account(s) at the end of the year necessarily mean the…

A: In case if in the fund balance accounts, there is a credit balance then it doesn't mean that the…

Q: t are the long-term sources of finance? Give various sources from which the long-term funds can be…

A: Step 1 The financial market, specialized financial institutions, banks, non-bank financial…

Q: Describe the factors needed in computing Additional Funds Needed.

A: Additional funds need often referred as AFN, means additional quantum of funds required to carryout…

Q: Why are accruals called spontaneous sources of funds, what are their costs, and why don’tfirms use…

A: Spontaneous source of funds means source through which funds can be arises from daily business…

Q: How much will be in the fund a

A: Time value of money (TVM) means that the sum money received in the present will have more value…

Q: Retirement programs, unemployment benefits, financial aid and other expenses that involve transfers…

A: Solution: Government spends money from its treasuries to fulfil various needs for people in economy.

Q: a.) How much is the total Statutory Reserves of Your Cooperative? b.) How much is the Optional…

A: Ans. 150,000 Explanation: As per Financial Reporting Framework for Cooperatives, statutory reserve…

Q: Please just list the four basic sources of long term funds

A: Long term source of funds are those sources of funds which are for long period of time and company…

Q: in your own perspective explain why the same company can be a saver and a user of funds

A: Funds are like blood for any institution or entity and some institutions earn through the exchange…

Q: Which of the following is not considered an “other long-term investment?” Sinking fund Preference…

A: The question is multiple choice question  Required  Choose the Correct Option.

Q: What is meant by the incremental cost of borrowing additional funds?

A: Incremental cost as the name indicates is the additional cost which a borrower will incur if the…

Q: hat is the purpose of valuation in t

A: Introduction : The fund raising refers to the process conducted by one entity of borrowing funds…

Q: he fund that records the payment of principal and interest associated with long-term debt is the…

A: Debt Service Fund- It is used to record the payment of principle and Interest on long term…

Q: Explain the sinking fund.

A: A Loan refers to the amount of money taken by one party named borrower from the other party named…

Q: What are the advantages of evaluating fund performance based on Internal Rate of Return (IRR)? Why…

A: The internal rate of return is the expected annual growth rate from an investment. Whenever the IRR…

Q: e: Sources and Uses of Short-Term and Long-Term Funds

A: Two main sources of finance are: 1. Internal sources 2. External sources. Company requires funds for…

Q: In fund flow statement repayment of long term loan is

A: Meaning of Fund Flow Statements Fund Flow statements are prepared to know about the changes in the…

Q: one: stablishing the fund, ma ck payment and never

A: PETTY CASH involves , b) establishing the fund , making payment and replenish the fund.

Q: Is the incremental cost of borrowing additional funds affected significantly by the early repayment…

A: Incremental cost of borrowing additional funds : For determining the total cost of borrowing the…

Q: URCES OF SHORT TERM AND LONG

A: Short term sources are those which are payable within a year and long term are those which are…

Q: ..............is the organizations , institutions that provide long term funds .   Select one : a .…

A: Capital market is the market where corporates raise capital like shares , bonds and long term…

Q: Show how Additional Funds Needed (AFN) work.

A: Additional fund needed (AFN) is the total amount of funds that a business entity would require from…

Characteristics of Bonds