Answer:
- Compound Interest ⇒ FV = PV x (1 + I ) ^N
- Simple Interest ⇒ FV = PV x I x N
Explanation:
With compound interest the rate of growth needs to be compounded which is why the time period is used to exponentially adjust it.
With simple interest there is no compounding so the value is simply the interest that will be earned every period (which is a constant value) multiplied by the number of periods and the amount to be invested.
Answer:
See explanation
Explanation:
(a) Assets are understated - If we do not adjust accrued revenue, the assets are understated. For example - if we do not add any outstanding rent revenue, the assets will become understated.
(b) Liabilities are overstated - If we do not adjust unearned revenue, the liabilities are overstated. For example - if we do not deduct any expired unearned revenue, the liabilities will become overstated.
(c) Liabilities are understated - If we do not adjust accrued expense, the liabilities are understated. For example - if we do not add any outstanding rent expense, the liabilities will become understated.
(d) Expenses are understated - If we do not adjust accrued expense and prepaid expense, the expenses are understated. For example - if we do not add any outstanding rent expense and expired prepaid expenses, the expenses will become understated.
(e) Assets are overstated - If we do not adjust prepaid expense, the assets are overstated. For example - if we do not deduct any expired prepaid insurance, the assets will become overstated.
(f) Revenue is understated - If we do not adjust accrued revenue and unearned revenue, the revenue is understated. For example - if we do not add any outstanding rent revenue and expired unearned revenue, the revenue will become understated.
Answer: Management control system
Explanation:
Management control system could be defined as a system that collects and uses information to analyze the performance of different organizational resources like human, physical, financial considering them all together in the light of organizational strategies pursued. It looks at comparing performances with the standards, plans or objective of the organization to determine if they are line with standards.
Answer:
B. The value of the next most valuable opportunity.
Explanation:
The opportunity cost of an investment is the value of the next most valuable opportunity.
Answer: 92812.50
Explanation:
The following information can be derived from the question:
Loan principal = $1,500,000
LIBOR for 1st 6 months = 4.50%
LIBOR for last 6 months = 5.375%
Lending margin per annum = 1.25%
The interest will then be:
= 1,500,000 × [(4.50% + 1.25%)/2] + 1,500,000 × [(5.375% + 1.25%)/2]
= 1,500,000 × [(0.045 + 0.0125)/2] + 1,500,000 × [(0.05375 + 0.0125)/2]
= 92,812.50
Therefore, the interest is 92812.50.
