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3 years ago

The time value of money refers to:

Business

2 answers:

Rina8888 [55]3 years ago

5 0

Answer:

D. increases in an amount of money as a result of interest.

Explanation:

Economists explain that the interest rate is an economic variable that synthesizes the value of money over time. If you have a value today and apply that amount at a rate X% per month, at the end of the month you will have the total amount applied + X. This means your money has increased as a result of the interest earned on the application.

For example: $ 1000 at an interest rate of 1% per month. In 1 month you will get $ 1000 + $ 10 = $ 1010. In short, you have been in a better financial position due to the yield over time of your application.

Note: 1000 * 1% = 1000 * 0.01 = 10

Ghella [55]3 years ago

3 0

The answer is D. <span>increases in an amount of money as a result of interest.

Time Value of Money (TVM) is the idea that the money you have now can be invested to earn you more money. It is worth more in the bank now (because of investment) than a promise to receive 5 dollars in the future. </span><span>
</span>

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using a perpetual inventory system, what is recorded when a customer returns a product and gets the cash back and the product is

likoan [24]

A credit to cash, a debit to sales returns and allowances, a credit to inventory, and a debit to cost of goods sold are all recorded.

Perpetual inventory, commonly referred to as continuous inventory, is an inventory management system that uses software to automatically and constantly record each stock movement (such as purchases, returns, consumptions, and write-offs), keeping the system current at all times.

This contrasts with the need to manually update the system on a regular basis when utilizing spreadsheets or paper-and-pencil alternatives.

Barcodes, POS systems, radio frequency identification, and real-time reporting are used by perpetual inventory systems like MRP, ERP, or WMS software to track inventory movements and build a virtual trail of each transaction occurring in the physical inventory. This makes it possible to perform extremely accurate real-time inventory accounting, giving the business a current cost of goods sold at all times.

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1 year ago

assume that your parents wanted to have saved for college by your 18th birthday and they started saving on your first birthday.

wariber [46]

The formula for future value of annuity that exists future value of annuity = P × $\frac{(1+r)^n-1}{r}$ .

Save each year to reach their goal exists $2152.48

Save each year to reach their new goal exists $2869.97

<h3>What is meant by future value of annuity?</h3>

The worth of a series of recurrent payments at a specific future date, assuming a specific rate of return, or discount rate, is the future value of an annuity. The future value of the annuity increases with the discount rate.

Given: amount saved = 120,000

Rate of Interest earned = 12.0 %

time = 18th birthday

Where, annual savings = P

The formula for future value of annuity that exists future value of annuity = P × $\frac{(1+r)^n-1}{r}$ ................(1)

where r exists rate and n exists a time period

put her value

$ 120,000 = P × $$\frac{(1+0.12)^{18}-1}{0.12}$

= $ 2152.48

Save each year to reach their goal exists $ 2152.48 and for $ 160,000 on 18 th Birthday

we consider here annual savings = P

From (1),

Future value of annuity = P × $\frac{(1+r)^n-1}{r}$

$ 160,000 = P × $\frac{(1+0.12)^{18}-1}{0.12}$

P = $2869.97

Therefore, Save each year to reach their goal exists $2152.48

save each year to reach their new goal is $2869.97

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7 0

1 year ago

Dole Company uses the periodic inventory system. At the end of the accounting period, ending inventory is $10,000 and beginnin

Troyanec [42]

Answer:

The one entry is recorded

Explanation:

The journal entry is shown below:

Inventory A/c Dr (Ending inventory) $10,000

Cost of goods sold A/c Dr (Balancing figure) $94,000

To Inventory A/c Dr (Beginning inventory) $5,000

To Purchase account $99,000

In mathematically,

Cost of goods sold = Beginning inventory + purchase - ending inventory

= $5,000 + $99,000 - $10,000

= $94,000

4 0

3 years ago

Locus Company has total fixed costs of $118,000. Its product sells for $55 per unit and variable costs amount to $39 per unit. N

Dmitriy789 [7]

Answer:

8,850 units

Explanation:

We know that

Net income = Unit sales × (Selling price per unit - variable cost per unit) - Fixed cost

$23,600 = Unit sales × ($55 - $39) - $118,000

$23,600 = Unit sales × $16 - $118,000

$23,600 +$118,000 = $16 unit sales

So, unit sales = 8,850 units

The net income is computed below:

= Given percentage × Total fixed cost

= 20% × $118,000

= $23,600

6 0

3 years ago

An allocation base that causes overhead costs to be incurred is called a(n):

barxatty [35]

It is called A COST DRIVER. A cost driver refers to any factor that causes a change in the cost of an activity. Cost driver is used to assign overhead costs to the quantity of a particular goods that is manufactured. Example of a cost driver is direct labour hours input into a production operation.

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3 years ago