What is a bank discount? How does it differ to simple interest? State the bank discount formula

Q: What is the formula for calculating interest on a note receivable?

A: Introduction:- A note receivable is a written promissory note to receive a specified amount of cash…

Q: An account issued by banks yielding a market rate of interest with a minimum balance requirement and…

A: Certificate of deposit is a certificate issued by the banks for fixed period, there is no…

Q: What interest rate is the bank required by law to report to potential borrowers? (I

A: Effective annual interest rate is also called annual rate of return . It is the real return…

Q: It is good for bank to considerec interest than compound one. True

A: Simple interest is always less than compounding because due to compounding the effective interest…

Q: Explain the possible IFRS treatment of bank loans.

A: IFRS is international finance reporting standards will replace with Accounting standards 39.

Q: How does the payment of a bank loan’s principal and a bond’s par value differ?

A: A bank loan is a common method and process for a business to acquire money and capital for various…

Q: Ina bank reconciliation statement, explain. A. Non-sufficient-funds (NSF) check B. What is a deposit…

A: Bank Reconcilation Statement Bank reconciliation is the process of  reconciling  of cash balance  as…

Q: Which of the Deposits in the bank provides facility for bank overdraft? Select one: O a. Current…

A: Banking system is a system in which bank organizations seeks deposit from public to lend them…

Q: Which of the following statements is correct? If the note is issued at a discount, the interest…

A: On the discount issue, the bond price is lower than its face value. The coupon amount (i.e. Interest…

Q: describe the structure of a bank bill. In your explanation, clearly distinguish the roles of the…

A: Introduction: A bill of exchange is a written document that obligates one party to pay another a…

Q: What would these securities be called and what does the Bank need to do to ensure the loan monies…

A: Loans refer to the agreement between the borrower and the bank or financial institution for…

Q: Bank loans often are arranged under existing lines of credit. What is a line of credit? How does a…

A: LiabilitiesLiabilities are referred to as the obligations of the business towards the creditors for…

Q: Liabilities of saving institutions include: checkable deposits, NOW accounts, and regular savings…

A: The answer for the multiple choice question and relevant explanation are presented hereunder : What…

Q: How long-term deposit accounts benefit borrowers

A: A deposit account is an account that is held by the customers of a bank and financial institutions…

Q: When a borrower receives the face amount of a discounted note less the discount, the amount received…

A: Explanation: A note is issued by the borrower to the lender indicating a promise to pay the…

Q: How the interest rate affects the release of credit card

A: Given,

Q: Distinguish between bank discount and simple interest.

A: Bank discount is defined as a interest which is deducted by the bank when a loan is made. It is…

Q: Question:1  Briefly explain the following: a) Importance of Bank Reconciliation statement and what…

A: Sales discount is offered by the business in order to collect the cash payment from the buyer. Under…

Q: risk

A: Introduction: Banks & other financial institution play an important role in the economic…

Q: Interest on bank savings accounts is calculated

A: Interest refers to the cost of money borrowed from a lender. It can be simple or compound. It is…

Q: How Do We Manage our Credit Card Debt?

A: There are many ways to manage the credit card debt. Some of them are below: Pay more than the…

Q: What is “imputed interest”? In what situations is it necessary to impute an interest rate for notes…

A: Imputed Interest: According to the Internal Revenue Service (IRS), an imputed interest is an…

Q: Calculate rebate on bills discounted?

A: When a customer who has bills recievable is facing liquidity issue he can approach bank inroder to…

Q: What does it mean when a lender accelerates on a note? What is meant by forbearance?

A: Promissory note is written by the borrower and sent to the lender. In promissory note, borrower…

Q: what are treasury notes?

A: Treasury notes: Treasury notes are interest-bearing securities with a static maturity of not fewer…

Q: Discounting is a transfer or endorsement of a promissory note by the payee in favor of another party…

A: Note means an instrument acknowledging as debt due from one party to another party. It carry defined…

Q: What is reinvestment risk (in the context of interest rate risk)? How does reinvestment risk impact…

A: A bank is a financial institution which is authorized to deposit money and provide loans. Financial…

Q: How is a line of credit issued by a bank similar to a credit card?

A: Line of credit is the amount that bank or any other financial institution has allowed to lend to the…

Q: Describe about the bank loans.

A: Liabilities: The claims creditors have over assets or resources of a company are referred to as…

Q: What are the different types of deposit accounts and loans offered to customers by any one…

A: SOLUTION PRIMARILY , BANKS OFFERS TWO TYPES OF DEPOSIT ACCOUNTS .THESE ARE DEMAND DEPOSIT LIKE…

Q: The accounting treatment of Discount on bill discounted is: a. A current liability b. A current…

A: The earnings which are earned but not received are the accrued revenue for the business. The…

Q: If a bill of exchange is discounted and on the date of maturity such bill of exchange was dishonored…

A: Bill of Exchange According to Negotiable instrument Act there are three types of Negotiable…

Q: What is mutual savings bank?

A: The mutual savings bank give loan to those people who are ignored by large financial institutions…

Q: A checking account is: OPTIONS: an asset to a commercial bank. a liability to a commercial bank. an…

A: A checking is a bank saving account which is opened with a commercial bank by a customer. He can…

Q: What is a non interest bearing notes?

A:

Q: riefly explain about Sources of Bank Funds: Bank Liabilities- Deposits/ Non-Deposits. No plagiari

A: Introduction : In simple words, banks are a kind of financial institution that engages in borrowing…

Q: what is the relationship between tne intrest rate and the bank prime loan rate

A: The prime rate (prime) and interest rate are both set by the Federal Reserve Bank (the Fed). In…

Q: What are the benefits of government setting and managing bank fees and rates to depositors?

A: Government used to deal with the citizens as well as deliver the public as well as social services,…