In a case whereby poornima gupta is retiring soon, so she is concerned about her investments providing her steady income every year, the risk is poornima most concerned about protecting against is interest reinvestment risk.
<h3>What is
interest reinvestment risk?</h3>
Reinvestment rate risk can be described as the risk that should be considered in the case whereby the investor have the reason to carry out reinvestment in regards with the future cash flows which could come inform of a lower return as a result of the interest rate declines.
It should be that this risk is very important to be taken serious by the investors because any slight mistake can result to very huge lost in the part of the investor and this can bring down there investor in term of finance which is very dangerous for his health as well as other investment that he have outside.
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Answer:
$58,800
Explanation:
The computation of the ending balance of Allowance for Doubtful Accounts is shown below:
= Ending balance of account receivable × estimated percentage
= $980,000 × 6%
= $58,800
By multiplying the ending balance of account receivable with the estimated percentage we can get the ending balance of Allowance for Doubtful Accounts could arrive
Answer:
Omar should get budgeting advice from a consumer credit counselor
Explanation:
It is apparent from the question that Omar is having a financial problems as he is finding it difficult to meet up with his student loan and credit cards repayment plan.
It is advisable at this point that he should engage the service of a consumer credit counselor for budgeting advice to improve on his situation.
Consumer credit counselling service is a form of service that help to proffer solution to financial problems through financial education , budgeting assistance and debt management.
Answer:
D.2, 3, 1.
Explanation:
The order of preparing the financial statement is described below:
1. Income statement
2. Statement of stockholder equity
3. Balance sheet
4. Cash flow statement
The income statement records all revenues generated and expenses incurred during a particular period.
The Statement of stockholder equity consists of common stock and the retained earning through which the ending balance could be computed.
The balance sheet reports the assets and liabilities of the company
And, the cash flow statement analyzes the cash inflow and cash outflow position of the company
