Answer:
a. 324%
b. 16.61%
Explanation:
a. The computation of the APR is the annual rate of interest which is shown below:
= Interest per month × number of months in a year
= 27% × 12 months
= 324%
b. And, the effective annual rate would be
= (1 + interest rate per month) ^ Number of months in a year - 1
= (1 + 27%) ^ 12 -1
= 1.27 ^ 12 -1
= 17.6053 - 1
= 16.61%
Answer:
B. Scenario analysis
Explanation:
Just like the name implies, it involves the analysis or description of various possible outcomes/action/events in the future. It is the process of analyzing future event by considering alternative possible outcomes.
It estimates the expected events.
After the failures suffered by PPG, they thought it better to use a technique that predicts possible occurence in order to avoid a repetition of those failures.
Answer:
c. $15,065
Explanation:
In bank reconciliation the book balance is adjusted using some adjustments made by the the bank and still pending by the business. We make an adjusted balance of cash book balance and bank statement balance to reconcile the amounts.
Cash balance per book 6/30 $13,000
+ Note receivable $4,000
- Bank charges $35
- NSF check <u>$1,900 </u>
Adjusted Cash book balance <u>$15,065</u>
Note receivable is received in the bank but not been recorded by the business. It will be added to the balance because it will increase the balance.
Bank charges are deducted by the bank but not been recorded by the business it will be deducted.
NSF check have already added by the balance but its not been cleared. So it needs to be deducted form the Book balance.
Answer:
$5,570
Explanation:
The purpose of a bank reconciliation statement is to reconcile the difference between Cash Book balance and Bank Statement balance. Also it is used to check accuracy of Cash Book and the accuracy of Bank Statement.
Graham, Inc.'s April bank reconciliation statement is prepared as :
Graham, Inc.
Bank reconciliation statement as at April 30
Balance as per Bank Statement $5,120
Add outstanding lodgments $800
Add back error at the bank $115
Less unpresented checks ($465)
Balance as per Cash Book $5,570
therefore,
The reconciled cash balance at April 30 on the bank reconciliation should be $5,570.
