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2 years ago

Explain the concept of the time value of money.

1 answer:

7 0

Time value of money (TVM) is the concept that an amount of money today is worth more than the same amount of money in the future because of the potential for earnings. This is a basic principle of finance. Money in hand has more value than the same money paid in the future.

Time value of money. Simply put, the value of a given amount of money today is worth more than it will be worth tomorrow. This is not due to temporal uncertainty, it is simply due to timing. The difference between the value of money today and tomorrow is called the time value of money.

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Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals.

alina1380 [7]

Answer:

Explanation:

Below are cash transactions for Goldman Incorporated, which provides consulting services related to mining of precious metals.

a. Cash used for purchase of office supplies, $2,300.

b. Cash provided from consulting to customers, $49,600.

c. Cash used for purchase of mining equipment, $81,000.

d. Cash provided from long-term borrowing, $68,000.

e. Cash used for payment of employee salaries, $24,800.

f. Cash used for payment of office rent, $12,800.

g. Cash provided from sale of equipment purchased in c. above, $23,300.

h. Cash used to repay a portion of the long-term borrowing in d. above, $44,000.

i. Cash used to pay office utilities, $5,100.

j. Purchase of company vehicle, paying $10,800 cash.

Required:

Calculate cash flows from operating activities.

Answer:

Explanation:

d. Ca

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7 0

3 years ago

If data indicates the economy is in recession and members of Congress are working to pass legislation to encourage economic grow

netineya [11]

If data indicates the economy is in recession and members of Congress are working to pass legislation to encourage economic growth, then recognition of change in the economy has almost certainly occurred. Recognition of change in the economy involves massive capital migration from one industrial sector to another, from one community to another, and even from one nation to another.

3 0

3 years ago

Read 2 more answers

Arlington Company is constructing a building. Construction began on January 1 and was completed on December 31. Expenditures wer

NemiM [27]

Answer:

$5,258,333

Explanation:

Arlington Company weighted-average accumulated expenditures

March 1 Expenditure $3,333,333

($4,000,000 ×10/12)

Add June 1 Expenditure $1,925,000

($3,300,000 ×7/12)

Add Dec 31 Expenditure $0

($5,000,000 ×0/12)

Weighted-average accumulated expenditures $5,258,333

($3,333,333+$1,925,000)

7 0

3 years ago

The officers of an oil refiner, trader, and hedger based in New York were arrested by the FBI for committing massive financial s

k0ka [10]

Answer:

Yes. The auditors were negligent for accepting photocopies of purchasing records as these are <u>not sufficient audit evidence</u> to base a opinion on.

Explanation:

As part of their professional skepticism, auditors must obtain sufficient audit evidence.

Audit Evidence must be reliable and relevant to be considered <em>sufficient</em> for the auditor to base their opinion.

Photocopies were not reliable as they do not contain the original signatures responsible personnel and may be altered.

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3 years ago

Priscilla decides to order a delivery from the local sandwich shop. Her order comes to $12. 74 and there is a $2. 30 delivery ch

DochEvi [55]

Debit is the amount of the money paid or owed, it can either raise the asset amount or can reduce the equity balances. It can also be referred to as the amount spent as an expense from the account.

$ 16.95 is the total debit amount.

<h3>How to calculate Priscilla's debit?</h3>

Given,