Answer:
The answer is: Obligation that has a distant due date exceeding company's operating cycle.
Explanation:
A current liability is a financial obligation due within one year (or one normal operation cycle).
So a financial obligation that has a due date that exceeds a company´s operating cycle should have been directly classified as a long term liability (or a non current liability) in the first place. It simply is not a current liability that is changed into a long term liability, it always was a long term liability.
The other options represent the steps necessary for turning a current liability into a long term liability.
- Intend to refinance the obligation on a long-term basis.
- Demonstrate the ability to complete the refinancing.
- Subsequently refinance the obligation on a long-term basis.
Answer:
Central, Peripheral
Explanation:
The advert is intended to highlight the pros of the particular car. However, the ad agency recognizes that to convince prospective buyers they must explore different options to persuasion. The car's safety and gas mileage are the Central Route. The driving fun is the Peripheral
Answer:
(a) 6.206%
(b) 6.54%
(c) 6.58%
Explanation:
Given that,
Commercial paper value = $3 million
Currently selling at 97.50 percent of its face value.
Days from maturity = 145
(a) Discount yield:
= 
= 
= 0.025 × 2.4827
= 0.06206 or 6.206%
(b) Bond equivalent yield:
= 
= 
= 0.026 × 2.52
= 0.0654 or 6.54%
(c) Effective annual return:
Future value = Present value × 
$100 = $97.50 × 
1.0658 = 1 + r
0.0658 or 6.58% = r
Answer:
D. 10.0%
Explanation:
As the bank reqiresd 10% compensating balance the actual amount unrestricted for the loan is 48,000 x (1 - 10%) = 43,200
and from this amount we have to solve for the effective rate:
principal x rate = interest
48,000 x 0.09 = 4,320
now we divide the interest over the actual principal to know the effective rate:
4,320 / 43,200 = 0.10 = 10%
Well it all depends on what you invested on and what was your outcome
