When no amount is in the base period, no percent change is computable. True or False True False

Q: Which of the following is NOT true about a discount rate? It can be expressed as a fraction over the…

A: Discount rate refers to rate at which discount will be given. It is a normally used practice in the…

Q: Under which situation is the simple rate equal to the effective annual rate, and under which…

A: Simple interest is a linear function of time since it is computed on the initial principal amount…

Q: Why are fixed assets reported on the balance sheet at a price that may not be accurate

A: Fixed assets are those that are not subject to change. Fixed assets are retained for an extended…

Q: What are the major differences in translating liabilities between the What are the…

A: liabilities  The financial responsibilities of a business, such as money owed to suppliers, wages…

Q: Accumulated Depreciation is a permanent account. True False

A: Temporary accounts are those which are closed at the end of every period and not shown in the…

Q: (d) Based on (c), what will be the ending balance in AFDA? What is net realizable value of A/R?

A: Accounts Receivables - Accounts Receivables are the amount unpaid by the customer for the service…

Q: All of the following items would appear on the balance sheet except Select one: O a. current…

A: A balance sheet is one type of financial document that shows a company's financial situation as of a…

Q: A markup cancellation can exceed the original markup but a markdown cancellation cannot exceed the…

A: NEITHER A MARKUP CANCELLATION NOR A MARKDOWN CANCELLATION CAN EXCEED THE ORIGINAL MARKUP OR MARKDOWN…

Q: In a complete sentence give an example of something that has been affected by inflation.

A: In finance inflation is the rate of increase in prices of goods and services over a time period. An…

Q: What are delayed revenues, and how do they work? Give three specific instances.

A: Delayed revenues, and three specific instances will be explained:

Q: The value of a series of payments is similar to the maturity value in a compounding transaction.…

A: Compound interest: It shall be measured on the principal sum and also on the accrued interest of…

Q: the Rebate Fraction wrong but everything else correct

A: Data given: No. of payments=18 Payments made=6

Q: True (t) or False (f) ______ Notes receivable are generally reported as noncurrent assets.

A: Generally, Notes receivable are expected to be matured within 12 months. Therefore, notes…

Q: False. Please Justify. The discount function [a(t)]^−1 is generally a decreasing

A: Decreasing function is which whose value go on decreasing with increase in value of variable.

Q: Describe the method used to establish the Economic equivalence at period 0?

A: Economic Equivalence sets the cash flows in such a way that its value is adjusted for the time…

Q: The nominal rate equals the real rate plus the inflation rate. True False

A: Nominal interest rate sometimes is also called as stated interest rate.

Q: Amounts of interest depend on lengths of time.Explain how?

A: Interest is also dependent on the base of the length of time A loan taken for a long period of time…

Q: am. 102.

A: APR stands for a) Annual Percentage Rate.

Q: _ ignores the affect of compounding   a)compound rate b)discount rate  c)stated rate…

A: The compounding effect is the effect that has been charged on the loan or deposit when the interest…

Q: account, we will ____ it. A. Debit  B. Credit

A: A contra asset account is a type of asset account with a balance that can be either negative or…

Q: Inflation affects the historical cost of an asset over time. TRUE OR FALSE.

A: Concept of historical cost of an Assets Historical cost of an assets refers to the cost at which an…

Q: Write the discounting formula for the Conversion from Actual to Constant Dollars?

A: Introduction Inflation is a major reason for conversion of actual value to Constant Dollar value.…

Q: What is the Depreciation Allowance under Inflation?

A: Inside these laws of unique cost depreciation, the absolute estimation of the duty exclusions in…

Q: On a CVP graph, dollars are represented on the horizontal (X) axis and unit volume is represented on…

A: On a CVP (Cost-Volume-Profit) graph, unit volume is typically represented on the horizontal (X)…

Q: I am studying uniform series or annuities. Does the uniform series are continuous with respect to…

A: Annuity is the periodic instalment which is received or paid at regular intervals.

Q: What is the varable cost for A? $0.10

A: Variable cost is the cost that changes with the change in production levels. It is directly…

Q: a present value is converted to a future value through compounding, explain this to me.

A: Present value (PV) is the amount of money one is having today. Future value (FV) is how much money…

Q: Do time lines deal only with years, or can other time periods be used?

A: The term time line refers to list of events which take place in chronological order. Timelines are…

Q: e following statements about annuities are true? Ch hnuity due earns more interest than an ordinary…

A: Annuities are instruments that involve fixed payments. There are mainly two types of annuities i.e.…

Q: What is difference between PERIODIC FIFO and PERPETUAL FIFO.

A: FIFO:   FIFO method is a method used for cost flow assumption mainly for the purpose of cost of…

Q: The term (1 + i)" is called a factor and is known as the single-payment compound amount factor.…

A: Future value of money can be calculated as F=P * (1+i)n (1+i)n  is called a factor and this factor…

Q: Prepaid Rent is always classified as a long-term asset. O True O False

A: Prepaid rent is when a tenant pays rent in advance, typically for a future month, and it's recorded…

Q: What is aging of receivables?

A:

Q: In the Vasicek Model , the short term rate cannot go negative . True False

A: The Vasicek Model is a popular interest rate model used to price financial instruments and to…

Q: Define Deferred Payments.

A: Liabilities:   Liabilities are referred to as the obligation of the business towards the creditors…

Q: When the profitability index is equal to zero, the benefits equal the costs. True False

A: Profitability Index is defined as the ratio between the present value of cash inflow to the present…

Q: What happens to a future value is you increased the rate, r? What happens to a present value?

A: When the interest rate increases, the future value of a sum now will increase. This is because the…

Q: What is a mathematical term that is on display when using the fractional reserve?

A: Fractional reserve banking is defined as the system, where the fraction of the bank deposits that…

Depreciation Methods

The word "depreciation" is defined as an accounting method wherein the cost of tangible assets is spread over its useful life and it usually denotes how much of the assets value has been used up. The depreciation is usually considered as an operating expense. The main reason behind depreciation includes wear and tear of the assets, obsolescence etc.

Depreciation Accounting

In terms of accounting, with the passage of time the value of a fixed asset (like machinery, plants, furniture etc.) goes down over a specific period of time is known as depreciation. Now, the question comes in your mind, why the value of the fixed asset reduces over time.