What is imputed interest?

Q: What exactly does the word "noncontrolling interest" imply in this context?

A: Non-controlling Interest: Non-controlling interest is the equity not attributable, directly or…

Q: What is covered interest arbitrage (CIA)?

A: Covered interest arbitrage: Covered interest arbitrage is a strategy in which the investors uses…

Q: Discuss the difference between an unrealized holding gain and a realized gain.

A: The gain is the excess of revenue earned over the expenses incurred.

Q: Define the term Unrealized gain.

A: Investment: The act of allocating money to buy a monetary asset in order to generate wealth in the…

Q: What does overstated mean?

A: Definition of Overstated:- Overstated uses two way terms by accountant: The entered or reported…

Q: Explain the difference between simple and compound interest.

A: Simple Interest: It is the interest amount that is computed on the original amount of loan, that is,…

Q: What is fair value accounting?

A: The accounting is a process to identify the transactions, classify and record the transactions and…

Q: What is reinvestment rate risk?

A: The reinvestment rate risk is the potential decline in the interest income that tends to be a result…

Q: What is appropriation?

A: Ans. In accounting, appropriation is done for various reasons such as for distribution of gains,…

Q: What are collaterals?

A: Assets are those resources that have some economic value held by an corporation, individual, or…

Q: What is arbitrage?

A: Arbitrage It is the buying and offering of an asset to benefit from a distinction within the cost…

Q: What is asset

A: Assets are those items that provide value for money and future economic benefit for an organization.…

Q: What is lien?

A: Lien: This is a case or legitimate right against properties normally utilized as collateral so as to…

Q: What is lessor?

A: A lease is the agreement between two individuals. Under the lease agreement one individual provide…

Q: What is intrinsic value or price?

A: Intrinsic value: Intrinsic value denotes to an investor's view of the intrinsic worth of an asset,…

Q: Describe in your own words the difference between simple interest and compound interest

A: Simple interest is when the interest is charged only on the principal amount. The formula of the…

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 is securitization?

A: Introduction: Finance reflects a broad variety of spaces where decisions can be taken relative to…

Q: What is discounting and compounding? What is the difference between them?

A: We need to use the equation of time value of money to explain the concept of discounting and…

Q: What is interest pooling and when is it appropriate?

A: Introduction : Pooling of interests is an accounting technique that allows for the consolidation of…

Q: What is hedging?

A: SOLUTION:- Hedging  refers to shielding of  investments. A hedge is an investment method which aims…

Q: Determine the theoretical ex-rights price?

A: The determination of the theoretical ex-rights price is generally done when stocks are issued and…

Q: What is exchange risk, as distinct from exposure?

A: Foreign exchange risk or foreign exchange exposure refers to the financial risk associated with a…

Q: What is the definition of “actuarial present value”?

A: Accumulated Benefit Obligation: It is an inexact rate of a company's pension plan liability towards…

Q: interest on interest is known as

A: Interest is the amount of money that is required by the investor or lender for providing capital to…

Q: What is present value interest factor?

A: The present value interest factor is a mathematical equation used to estimate today's value of money…

Q: Define interest.

A: Interest is the amount charged by the lender for the money lend for specific period.

Q: briefly explain compound interest and the purpose of it

A: There are two methods of interest rate one is simple interest and other is compounding interest.

Q: What is the discounting process?

A: Discounting: It is the process where the bill is given to a bank to get the bill discounted before…

Q: What is contra?

A: Contra in accounting terms means an account with balance that has opposite of the normal balance and…

Q: legal reserve

A:

Q: Explain the Nonrecourse clause?

A: A sum of money that an individual or company owes is called liability. It is an obligation between…

Q: How is the PW analysis dependent on the rate of interest used for the PW computation?

A: Net present value (or) PW analysis is one of the capital budgeting techniques. When a company is…

Q: How does compounded interest work?

A: compound interest : it is the interest on loan calculated based on principal and interest.

Q: What is an unasserted claim?

A: An unasserted claim or assessment is one in which the affected party or potential claimant has not…

Q: What is simple interest?

A: Interest is the amount a cash flow earns as a result of owning or investing a sum of money. It can…

Q: What is conflict of interest?

A: Conflict of interest: Conflict of interest occurs when a person derives personal benefits by…

Q: What is notional value?

A: Notional value is used to value the underlying asset. In simple words it tells how much of value a…

Q: What is lessee?

A: Lessee: It is term used for any person who has rented any land-property from someone else. That is…

Q: Is profit an asset or liability?

A: profit or income are generally classified under assets.

Q: What is the definition of fair value?

A: Investments:

Q: What are the advantages of simple interest?

A: Simple Interest Simple interest refers to the amount of interest that is calculated only on the…

Q: What is Accumulated benefit obligation?

A:

Cost of Credit

The cost of credit is an extra amount that the borrower has to pay besides the loan amount. These credit charges may vary from loan to loan. The cost of credit includes interest charges, maintenance charges, and arrangement charges. Some of the costs are mandatorily collected by the lender based on the loan amount and tenure of the loan. The cost of credit is also called finance charges of the credit.