Answer:
A. It is a valuation method.
Explanation:
The matching principle is used to assign same costs with the same revenues. For example the inventory bought to make the product would be assigned like wise to assure the guideline of matching principle.
It is a valuation method.
It is used to evaluate the accounting procedures.
For example let us assume that we are selling candies. But the advertisement is run once the candies have been manufactured and sealed. So the matching principle states that the advertisement expenses to be included in the income statement having the corresponding stock of candies manufactured and sold.
Answer:
The yield to call is 5.07%
Explanation:
The yield to call can be computed using the rate formula in excel,which is given as :=rate(nper,pmt,-pv,fv)
nper is the number of years to call which is 6 years
pmt is the annual interest coupon payable by the bond,which is :6.75%*$1000=$67.5
The pv is the current price at which the bond is offered to investors. i.e $1,135.25
fv is the price at the bond would be called in six years i.e par value+premium
par value is $1000
premium is $67.5
call price is $1067.5
=rate(6,67.5,-1135.25,1067.5)
rate=5.07%
Answer: 12.88%
Explanation:
The following information can.be inferred from the question:
Purchase price of share = $36.48
Dividend = $1.62
Selling price = $41.18
Capital gain = $41.18 - $36.48 = $4.70
Capital gain yield:
= Capital gain / Purchase price × 100
= (4.70 / 36.48) × 100
= 0.1288
= 12.88%
Answer:
Our P = 17540 $
Explanation:
Amount of Insurance Policy = 50000$
premium reserve at 10th Year = 8000$
Net Premium for the policy = 900$
Annual Interest Rate = 6%
Net Premium at the age of 46 = ????
900 * 10 years = 9000$
9000 + Interest rate @ 6% = 9540$
Net Premium + Premium reserve of 10 Years = 9540 +8000 = 17540$
P = 17540 $
Note: As similar policy have interest rate @ 6%,which is paid every year,
At the age of 46, Net premium reserved amount also will be recovered.
