1. | Question : | (TCO A) Listed below are several information‚ characteristics‚ and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application. | | | Student Answer: | | : Historical cost principle | | 1 : Earnings process completed and realized or realizable | | | | : Going concern principle | | 2 : Cost of providing financial information versus the benefits derived from its use | | | | : Matching principle | | 3
Premium Balance sheet Generally Accepted Accounting Principles
using mobile money free of charge and receive SMS reminders and monthly statements sustain savings. Annuity plan. An annuity is a contract that converts a sum of money into a series of periodic payments (i.e. monthly‚ quarterly‚ semi-annually and annually) for an agreed period of time. Annuities are important because they address the financial planning needs of people in or approaching retirement. Annuities provide a form of protection against the risk or outliving one’s assets by guaranteeing income
Premium Insurance
] In the “Midterm test” worksheet‚ create one model to solve the following problem: As of Jan 1st‚ 2011‚ you want to buy a car and are given two payment methods as follow: A1. Pay now: to pay VND 500 million A2. Pay by annuity: to pay for 5 years‚ each year pays 3 times at the beginning of each period. The amount paid each time is VND 44 million. Regardless of your choice‚ the first payment will occur today. Using your information‚ you estimate that the interest
Premium Spreadsheet
The Road To Wealth The road to wealth by Suze Orman. In this book Suze Orman talks us through the steps that can lead you to becoming a wealthy person. The book helps people understand ways to save up money. She gives financial information that gives you guys the power to act in your best interest. Suze Orman’s gives out answers that help remove obstacles that retain you from being wealthy. The road to wealth is a book designed to help you take action. Chapters 1
Premium
Table of contents: Page no. 1. Introduction 1 2. Investment appraisal 2 3. Payback method 3 4. Present value (PV)‚ future value (FV) and net present value (NPV) 5 5. Project 1 6 6. Comparing projects 11 7. Conclusion 12 8. References 13 9. Bibliography 14 Introduction: In 21st century business is much more developed and competitive as well with the presence of so many competitors
Premium Net present value Discounted cash flow Cash flow
Master of Business Administration- Semester 2 MB0045-FINANCIAL MANAGEMENT (4 credits) (Book ID: B1628) ASSIGNMENT- Set 1 ___________________________________________________________________ Q1. What are the goals of financial management? Ans. Goal of financial management Financial management means maximization of economic welfare of its shareholders. Maximization of economic welfare means maximization of wealth of its shareholder’s wealth maximizations reflected in the market value of the firm’s
Premium Net present value Rate of return Time value of money
Based on the perpetuity formula we can compute the PV in this case : Computation of the PV : PV= Cash flow per year/ cost of capital) =4‚500 / 0.12 = $37‚500 Computation of the NPV : NPV= -Initial investment + PV = -35‚000 + 37‚500 NPV=$2‚500 Rainbow products could buy this machine with the service contract if they intent to use it in the long-run. (C) Computation of the PV : PV= C/ k-g In this case C (end of year perpetuity payout) = 5‚000-1
Premium Net present value Cash flow
Drexel LeBow College of Business FIN 640 – Mergers and Acquisitions Case Study: Martin Marietta – Vulcan Merger Presented by: Dharmesh Bharathan Andrew Hall Luis Hernandez Aziz Khan Teng Zhang Executive Summary This case study examines the proposed merger of Vulcan Materials and Martin Marietta both providers of construction aggregates. A stock-for-stock merger had the potential of making the company a global leader in construction materials‚ but was marred by disagreements over executive
Premium Stock market Stock
Understanding Interest Rates 4.1 Measuring Interest Rates 1) The concept of ________ is based on the common-sense notion that a dollar paid to you in the future is less valuable to you than a dollar today. A) present value B) future value C) interest D) deflation Answer: A 2) The present value of an expected future payment ________ as the interest rate increases. A) falls B) rises C) is constant D) is unaffected Answer: A 3) An increase in the time to the promised future
Premium Bond
only. He should consider itemizing his deductions instead of taking the standard deduction which might provide a larger reduction in income. In addition‚ John Smith might want to consider choosing to receive his $300‚000 in annuity payments instead of a lump sum. If the annuity payments are spread out
Premium Taxation in the United States Taxation