Answer:
Explanation:
The journal entry is shown below:
Cash A/c Dr $2,480
To Interest receivable $60
To Interest revenue $20
To Note receivable $2,400
(Being the collection of funds is recorded)
The computation of interest receivable is shown below:
= Principal × rate of interest × number of months ÷ (total number of months in a year)
= $2,400 × 10% × (3 months ÷ 12 months)
= $60
And for interest revenue would be
= Principal × rate of interest × number of months ÷ (total number of months in a year)
= $2,400 × 10% × (1 months ÷ 12 months)
= $20
Answer:
OD. A person who goes to earn a college degree will have to pay the full costs of going to college
Answer:
Stock is valued at lower of : cost or market price [prudence principle]
Explanation :
Prudence or Conservatism is an accounting principle : anticipating for all possible losses & expenditures, not anticipating for possible profits & gains. This makes business better prepared to face all contingent expenditures/ losses.
This concept's implication is that : Stock or Inventory is valued at the value whichever is lesser between 'cost of inventory' & sale price. This makes inventory valuation as per the above explained Prudence/ Conservatism principle.
Answer:
What is the article tho? U can take a picture of the article and send it here so I can try and help you
Answer:
Year Cashflow [email protected]% PV
$ $
0 (750,000) 1 (750,000)
1 350,000 0.9259 324,065
2 325,000 0.8573 278,623
3 250,000 0.7938 198.450
4 180,000 0.7350 132,300
NPV 184,438
The correct answer is D. The difference in answers is due to rounding error.
Explanation:
Net present value is the diffrence between initial outlay and present value of inflow. We need to discount the cash inflows for year 1 to year 4 at 8% and then calculate the present value of cash inflows by multiplying the cash inflows by the discount factors. Finally, we will calculate NPV by deducting the initial outlay from the present value of cash inflows.
