Compound interest: FV = PV / (1+I)^N
Simple interest: FV = PV + (PV x I x N)
a. True
b. False
a. True
Explanation:
Compound interest
FV = PV / (1+I)^N
Simple interest
FV = PV + (PV x I x N)
All other variables held constant, investments paying simple interest have to pay significantly higher interest rates to earn the same amount of interest as an account earning compound interest.
a. True
All other factors being equal, both the simple interest and the compound interest methods will not generate the amount of earned interest by the end of the first year.
b. False
After the end of the second year and all other factors remaining equal, a future value based on compound interest will exceed a future value based on simple interest.
a. True
<span>Which of the following answers correctly defines the principal for a mortgage? The amount of money borrowed. The principal in a mortgage is defined as the amount of money you actually borrowed from the lender to purchase the home. The interest is defined as the amount of money the lender is charging overtime when you pay off the principal. </span>
Answer:
Blossom Corp.'s accounts receivable turnover ratio is 4.23 times
Days’ sales outstanding (DSO) of the company is 86.3 days
Explanation:
The accounts receivable turnover ratio is an efficiency ratio that measures how many times a company can collect its receivables or money owed by clients during the year.
Accounts receivable turnover ratio is calculated by following formula:
Accounts Receivable Turnover ratio = Net Credit Sales /Accounts Receivable = $5,546,000/$1,310,000 = 4.23 times
Days’ sales outstanding (DSO) = 365/Accounts receivable turnover ratio = 365/4.23 = 86.3 days
Answer:
Equivalent units of production for materials
Opening work in process was complete with respect to materials so not EUP there.
Closing work in process was complete as well.
EUP for materials is:
= Units transferred to Finishing Department - opening WIP
= 630,000 - 150,000
= 480,000 units
Equivalent units of production for conversion
= EUP opening work in process + units transferred to finishing department + EUP closing work in process
= (40% * 150,000) + 480,000 + (40% * 120,000)
= 60,000 + 480,000 + 48,000
= 588,000 units
<em />
<em>EUP opening work in process already had 60% of conversion cost incurred in previous period so only 40% will be incurred in present period. </em>
managers must launch a concerted, ongoing effort to ferret out cost-saving opportunities in every part of the value chain, for example, cost drivers such as number of products in the product line, capacity utilization, production technology and design, and labor productivity and compensation costs.
Answer: Option A.
<u>Explanation:</u>
A low cost provider tries to sell its items at the most minimal value it can, while as yet causing a benefit so it to can attract clients to the market. This is the wide form of the ease methodology on the grounds that such organizations attempt to engage an expansive market.
A low cost approach is more than just an open door for current clients to purchase similar products for less. Offering a constrained scope of items without settling on quality is another basic mainstay of some minimal effort plans of action.