Are there any particular elements to interest-bearing transactions

Q: List the Elements ofTransactions Involving Interest?

A: The amount that is charged from the borrower over the borrowed amount or the amount that is provided…

Q: What is covered interest arbitrage (CIA)?

A: Covered interest arbitrage: Covered interest arbitrage is a strategy in which the investors uses…

Q: What is imputed interest?

A: Interest: Interest is a charge against the amount due, Interest is paid on the amount borrowed as a…

Q: In what situations is interest capitalized?

A:

Q: Which are the Elements of transactions Involving Interest?

A: Answer: The following are the elements of transactions that involving interests, Principal: The…

Q: Balance of Interest Expens

A: In this question, we have given a trial balance and we have to find out the interest Expense amount…

Q: Distinguish between assets and liabilities.

A: Step 1 Assets can be defined as the resources owned by the organization which is capable of…

Q: Why does a balance sheet balance (assets = Liabilities + OE)?

A: Accounting is done on double entry system, in which we book any financial transaction into books at…

Q: What is tmes-Interest earned?

A: Times-interest earned: This ratio quantifies the number of times the earnings before interest and…

Q: n what way do assets differ from liabilities?

A: Solution: Asset is a resource owned by the business having some economic value with expectation of…

Q: interest

A: Exact Interest = P*r*(t/365) Ordinary Interest = P*r*(t/360)

Q: In what situations is interest capitalized rather than expensed?

A: Capitalized interest is the cost of the funds used to finance the construction of a long term asset…

Q: are payments and receipts of interest classified as operating activities rather than as financing or…

A:

Q: How much should be presented as "Trade and other receivable" under current assets?

A: Particulars Amount (P) Trade Receivables 725000 Trade Notes Receivables 100000 Less: Sales…

Q: How are the terms “probable,” “reasonably possible,”and “remote” related to contingent liabilities?

A:

Q: what is total liabilities?

A: Solution-   Total Liability-Total liabilities are the combined debts and obligations that an…

Q: Explain the term Interest?

A: Interest is a compensation that one has to pay for using another entity's or person's funds. The…

Q: Is accrued interest an asset, liability or owner's equity?

A: Accrued interest refers to the amount of interest that is earned or incurred till the reporting…

Q: Define what "accrual" AJE transactions are.

A: Journal entries are made in the books of account to record the financial transactions of a business.…

Q: Is Capital debit or credit?

A: As per Business Entity concept Business is treated as an entity which is different from Proprietor.…

Q: What is the Rate of Interest?

A: Given  P= 10000 A=5000 n=1year r=?

Q: What are the various forms of interest-bearing transactions

A: The various forms of interest-bearing transactions of explanation:

Q: compute the present value of interest and the principle amount

A: Present value is the sum of present value of future cashflow discounted with the required rate of…

Q: How is internal control applied to liabilities?

A: It is often seen that frauds, employees thefts, and manipulation of records incur in the…

Q: What is net interest? Identify the elements of net interest and explain how they are computed.

A: Net interest- Net interest typically is the difference between the interest earned by the…

Q: what is qualifying assets?

A: Manufacturing plants, power generation facilities and inventories requiring time to get into…

Q: How does compound interest differ from simple interest?

A: Budgeting is a process to prepare the financial statement by the manager to estimate the…

Q: True or false  Simple interest is calculated on the principal and any accrued interest

A: Interest:   Interest is the cost of borrowing money-, in other words Interest is the amount charged…

Q: What factors need to be considered in determining whether a receipt is of an income or of a capital…

A: The essential distinction between Capital Receipt and Income is the "purpose" with which the asset…

Q: What’s financial instrument

A: Financial instruments can be broadly divided into: a. cash instruments b. derivatives instruments

Q: Why aren’t transactions involving accounts payable considered to be financing activities?

A: Answer: Accounts payable is current liability which is used in computing working capital, excess of…

Q: What is the accrual basis accounting?

A: Definition:   Accrued revenue: Accrued revenue refers to the revenues that are generated from the…

Q: When it comes to calculating interest, what procedures are used?

A: The Answer:

Q: What is the three-step process used to determine the amount of interest capitalized?

A:

Q: What is a promissory note? What are its benefits?

A: Promissory note:A promissory note is a legal financial instrument that has a written promise between…

Q: The difference between simple interest and compound interest?

A: There is various difference between simple and compound interest.  Few of them are as follows-

Q: How are the balance sheet and income statement affected by fair value accounting?

A:

Q: what is liability? what is equity?

A: Accounting:   Accounting is the art of recording, classifying and summarizing in a significant…

Q: What is accruals?

A: The answer is provided as follows:

Q: What is Asset and Liabilities?

A: The balance sheet is the financial statements of the business which displays the assets and…

Q: Write the different types of Transactions involving Interest?

A: The interest is the excess amount paid by the borrower to the lender other than the loan amount at a…

Q: Where do current assets and current liabilities come from?

A: Current Assets = Cash + Supplies + Prepaid Insurance Current Liabilities = Creditors + Salary…