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KIM [24]
4 years ago
10

If you are selecting between the best investment from two or more investments, the best choice is the account with the greatest

_____, which is the ____ interest rate that produces the same amount of money at the end of one year as when the account is subject to compound interest at a stated rate
effective annual yield, simple
Business
1 answer:
LekaFEV [45]4 years ago
8 0

Answer:

The investment with greatest Effective Annual Yield will be selected because this effective annual yield is also known as Effective Interest Rate.

Explanation:

The effective annual yield is the annual return that we will earn. If the interest we are paid on deposit of $100 in bank account is $10 after a 365 days then the effective interest rate is 10% ($10/$100). So saying effective annual yield or effective interest rate is the same. In investment apraisal, we calculate effective interest rate to opt investments that has greatest effective annual yield.

You might be interested in
The emphasis on keeping customers for long periods of time is the central focus of ______ value and the reason firms focus on cu
Archy [21]

Answer:

Customer Lifetime Value

Explanation:

Customer Lifetime Value is a measure of how much amount of money a customer spends on your business/products/services over the course of his whole lifetime.

It is a predictor of how well you are doing to retain your existing customers.

Why is it important?

suppose you spend $10 to advertise your product (belt) and a customer buys 5 belts on average every year for 15 years. You get $12 profit for each belt sold.

12*5*15= 900$

Subtract the advertising cost

900-10=890$ This is your customer lifetime value

Now imagine what would have happen if we had to sell these belts to 75 different customers?

The advertising cost to attract 75 customers would have been too much and hence net profit and customer lifetime value would be very less.

75*10=750$

900-750=150$

This is why customer lifetime value is important and businesses focus on retaining their customers for longer periods.

3 0
3 years ago
Watts Corporation made a very large arithmetical error in the preparation of its year-end point in the calculation of financial
topjm [15]

Answer:

d. a prior period adjustment.

Explanation:

Correction of the error when discovered in the next year should be treated as a prior period adjustment. This is basically because the error was already recorded in the past financial report. Since these reports are final and cannot be changed, then the correction to this error needs to be implemented in the next year's financial report and would reflect on that year's income taxes. The process of doing this is known in accounting as a prior period adjustment

7 0
3 years ago
For higher levels of management, responsibility accounting reports:
Yuri [45]

Answer:

Option A is correct one.

<u>Are more summarised than for lower levels of management</u>

Explanation:

For higher levels of management, responsibility accounting reports<u> are more summarised than for lower levels of management.</u>

It is a summarised report facilitating the higher levels of management in order to keep a track of performance of low level management.

5 0
3 years ago
What is the first step in financial planning?
abruzzese [7]
B. Understanding what you want!
3 0
4 years ago
Read 2 more answers
Jones Blanket Company sells blankets for​ $25 each. The variable cost of each blanket is​ $10. If fixed cost is​ $4,500,000, the
Nutka1998 [239]

Answer:

given statement is true

Explanation:

given data

sells blankets =​ $25 each

variable cost = $10

fixed cost = $4,500,000

break minus even point =​ 300,000 units

to find out

true/ false

solution

we will check here break minus even point for find true or false

so here

Contribution is express as = sells blankets - variable cost

Contribution = $25 - $10 = $15

so

break minus even point = \frac{fixed \ cost}{Contribution}

put here value

break minus even point = \frac{4500000}{15}

break minus even point = 300,000

so we can say given statement is true

8 0
4 years ago
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