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2 years ago

What are the two definitions of cash, and why do corporate treasurers often use the second definition?

Business

1 answer:

dimulka [17.4K]2 years ago

3 0

Answer:

The general term "cash" is used to describe paper money that is exchanged for goods and services. When the term "cash is used by corporate treasurers they are often referring to currency and demand deposits which are considered to be cash equivalents. These cash equivalents include highly liquid marketable securities that can be sold rather quickly at a predictable price which makes them attractive to corporate treasurers.

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A company can be socially responsible by having employees volunteer their time. True or False?

NikAS [45]

Answer:

true

Explanatio

6 0

3 years ago

Mary buys an annuity that promises to pay her $1,500 at the end of each of the next 20 years. The appropriate interest rate is 7

alina1380 [7]

Answer:

PV= $15,291.74

Explanation:

Giving the following information:

Annual cash flow= $1,5000

Number of years= 20

Interest rate= 7.5%

To calculate the present value, first, we need to determine the future value using the following formula:

FV= {A*[(1+i)^n-1]}/i

A= annual cash flow

FV= {1,500*[(1.075^20) - 1]} / 0.075

FV= $64,957.02

Now, we can calculate the present value:

PV= FV/(1+i)^n

PV= 64,957.02/(1.075^20)

PV= $15,291.74

7 0

3 years ago

You want to buy a new sports coupe for $84,500, and the finance office at the dealership has quoted you an APR of 5.2 percent fo

just olya [345]

Answer:

Ans. Your monthly payments will be $1,602.37 ; The effective annual rate is 5.33%

Explanation:

Hi, first, we need to convert this APR rate into an effective monthly rate, that is, dividing 0.052/12 =0.00433 (or 0.4333%). Then we need to use the following equation and solve for A.

$PresentValue=\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }$

Where:

PresentValue= 84,500

A = periodic payments (the monthly payments that you need to make)

r = 0.004333333

n=60 months

So, let´s solve for A.

$84,500=\frac{A((1+0.004333333)^{60}-1) }{0.004333333(1+0.004333333)^{60} }$

$84,500=\frac{0.296201791}{0.005616874} A$

$84,500=A(52.73427328)$

$A= 1,602.37$

Now, in order to find the effective annual rate, we need to use the following equation.

$r(EffectiveAnnual)=((1+r(EffectiveMonthly))^{12} -1$

Notice that to find an effective rate you have to start with another effective rate, otherwise it won´t work. So everything should look like this.

$r(EffectiveAnnual)=((1+0.004333333))^{12} -1=0.0533$

Meaning that the equivalent effective annual rate to 5.2% APR is 5.33% effective annual.

Best of luck.

6 0

3 years ago

F brown lent us 4000 giving us the money by cheque show in journal entry

Nastasia [14]

Answer:

see below

Explanation:

This transaction is affecting the bank's balance and F brown accounts. It is increasing the bank balance( asset account) by 4000 and increasing accounts payable/F brown ( liabilities account) by 4000.

An increase in assets is debited while an increase in liabilities is credited.

the journal entry will be

Bank A/c Dr. 4000

F brown A/c 4000

3 0

3 years ago

Installing a security system is an example of this operating expense.

Finger [1]

Installing a security system is an example of an improvement operating expense. Option B. This is further explained below.

<h3>What is security system?</h3>

Generally, a security system is simply defined as a system of security when someone attempts to break in, an electrical gadget sends off an alert.

inconclusion, An example of an improved operational expenditure is the installation of a security system.