What is the difference between a perpetual and a periodic system?

Q: What does the term “end-of-period convention” mean? What does it not mean?

A: End-of-period convention is an accounting concept according to which all income and outgoing payment…

Q: Explain renewal probability?

A: Answer: Renewal probability is nothing but the average percentage of renters in a building that is…

Q: What is the Tolerable Rate?

A:

Q: What are the important feature of a perpetual system?

A: Perpetual inventory system: The method or system of maintaining, recording, and adjusting the…

Q: Define the term Continuous Compounding?

A: Continuous compounding is as far as possible which accumulating funds can surpass in the event that…

Q: What are the use of time series?

A: Time series is a sequence of different points which occurs at successive orders at different time…

Q: What are the requirements of Continuous Compounding?

A: The question is based on the concept compounding of interest rate.

Q: What is the difference between the Cumberland Gap and GAAP?

A: Answer:-  Difference meaning:- Difference is an important notion in philosophy, referring to the…

Q: What is the End-of-Period Convention?

A: As per the end-of-period convention, all incoming and outgoing payments (cash flows) of an…

Q: What are the Interest Tables?

A: Tables are prepared to provide the precise information generally the quantitative information in…

Q: Define the term End-of-Period Convention?

A: Cash flows refer to the amount of cash that is either invested or received by the company during the…

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 periodic rate?

A: A periodic rate is a rate that can be paid on a credit or acknowledged over a fixed timeframe on…

Q: What is Flip's Operating Cycle?

A:

Q: What is double-declining-balance method?

A: Double declining balance method is method for recording depreciation, it is a part of accelerating…

Q: Explain the periodicity assumption.

A: Definition:   Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to…

Q: What is Continuous Compounding?

A: Continuous compounding: Continuous compounding is a kind of compounding countless number of times in…

Q: What is a subsequent event?

A: Financial statements are the records containing the trading account, profit and loss account and the…

Q: I am studying uniform series or annuities. Does the uniform series are continuous with respect to…

A: Annuity is the periodic instalment which is received or paid at regular intervals.

Q: What is a break-even point and how is it calculated?

A: Break-even point: Break-even point is defined as a situation where a firm’s expenses and revenues…

Q: What is maturity date?

A: Maturity dates are generally used in order to classify the securities as short term, medium term or…

Q: What is difference between PERIODIC FIFO and PERPETUAL FIFO.

A: FIFO:   FIFO method is a method used for cost flow assumption mainly for the purpose of cost of…

Q: How can we determine a Compounding Period?

A: A compounding is the interest charged on interest. When any investment is made for certain years,…

Q: Difference between periodic LIFO and perpetual LIFO methods.

A: LIFO:   LIFO method is a method used for cost flow assumption mainly for the purpose of cost of…

Q: what is the new balance (in $)?

A: Average Daily Balance Credit card companies normally use average daily balance  to charge interest…

Q: concepts of duration and convexity

A: Duration and convexity are pivotal concepts relating to bond investments. These have been explained…

Q: What is meant by maturity date?

A: Bonds are simply corporate debt units that are issued by firms and securitized as tradeable assets.…

Q: What is horizon date?

A: The sum of growth rate (capital gains yield) and dividend yield is the rate of return on equity. The…

Q: What is GAAP? When was it formed?

A: Generally Accepted Accounting Principles (GAAP): Generally Accepted Accounting Principles (GAAP) is…

Q: 1. What is the duration and why do we measure it?

A: Duration of Bond :-

Q: What is the machine's payback period?

A: Payback period=Last period with a negative cumulative cash flow+(Absolute value of cumulative cash…

Q: Define : Perpetual system and Periodic system

A: Inventory is one of the current asset of the business. It includes inventory of raw materials, work…

Q: What is the explanation for the mechanics of compounding?

A: Compound interest can be defined as the interest earned on principal amount and on all previous…

Q: What are the two components of Time value?

A: Time Value: In the selling of options, the term value applies to a portion of the price on an offer…

Q: What is original maturity?

A: The maturity period of a security is the time period that represents a securities life. It is the…

Q: What is ‘Fixed’ APR and ‘Variable’ APR?

A: APR is percentage  Annual rate of interest  charged on credit cards or mortgages or loans.

Q: What is compounding frequency?

A: Compound interest - In this method, the interest is calculated on the balance at the end of each…

Q: Periodic Concept

A: The periodic concept is also called the time interval concept. It specifies the time period during…

Q: Which of the following variables are pro-cyclical?

A: Answer: Unemployment Rate and Labor force participation

Q: Define Periodicity assumption.

A: Generally Accepted Accounting Principles (GAAP): These are the guidelines necessary to create…