Purpose of a bank reconciliation statement.
A bank reconciliation statement is used to compare your record to those of your bank to see if there is difference between the two sets of records. The ending balance of your version of cash records is known as the book balance while the bank`s version is known as bank balance. It is common for there to be a difference in the two balances. The results to the differences might be due to overdrawn bank account, bounced checks and overdraft fees. It is important for you to check the difference because there might be substantial variance between the amount you think you have and that the bank thinks you have. In some cases the bank may even elect to close down your account.
Answer:
PV of Perpetuity = $5000
Explanation:
A perpetuity is a series of cash flows that are constant, occur after equal intervals of time and are for infinite period of time or are perpetual. Thus, it is like and annuity but with an infinite time period. The formula for the present value of of perpetuity is,
PV of Perpetuity = Cash Flow / r
Where,
- r is the required rate of return
PV of Perpetuity = 250 / 0.05
PV of Perpetuity = $5000
Answer:
Profitability
Explanation:
It is not enough that our target market is reachable, stable, cost-effective, and measurable. We also need to measure how profitable the market is. We know that our major aim of doing business is to make profit, therefore the profitability of the market must be measured as well.
