1. Ratio Analysis -

Q: Why future value is important to calculate?

A: Future value is the value of what a certain asset/cash/instrument will be worth at a future…

Q: Who uses the original base period for the CPI index?Give an example?

A: CPI is the abbreviation used for the consumer price index. The combined weighted average value of…

Q: Discuss Present Value of Perpetuities?

A: Perpetuity is the stream of cash flows or payments that are made at equal intervals that do not have…

Q: What are Eurodollars?

A: Eurodollars:It refers to the deposit of US dollars in the banks that are located outside the US (and…

Q: What is the natural business year?

A: An accounting period defines the time period, in which the business transactions shall be considered…

Q: Write the various applications that call for annual-worth analysis techniques?

A: Annual worth analysis is the analysis which is done by the managers before taking capital budgeting…

Q: How to find present value annuity

A: Present value: It is the present value of the sum of money that a firm is going to receive at some…

Q: Explain the concept of time value of money. Differentiate between present value and future value.…

A: 1) The time value of money is a financial concept that holds that money in the present is worth more…

Q: what about in terms of present value?

A: Present value helps us know the value of future cash flows in the present time. A higher interest…

Q: Define the term future value.

A: Future value (FV) is the value of a current asset at a future date based on an assumed rate of…

Q: What is the effective annual rate (EAR) and what is the purpose.

A: The effective Annual Rate (EAR) is the rate of interest actually earned on an investment or paid on…

Q: pact does time period hav

A: Annuities are the uniform periodic payment that are paid at the end of period or beginning of the…

Q: 3. What is the compensation expense in 2021?

A: Compensation Expense= Compensation Expense are Expenses made in exchange for services rendered…

Q: What is the net present value of an annuity?

A: Net present value is defined as the temporal variation in the present value of cash inflows and…

Q: What is growth rate?

A: A growth rate is the percentage increase in the cash flows of the company. A growth can be measured…

Q: What is the concept of future value within the context of the larger overall concept of the time…

A: The concept of future value is a fundamental component of the broader idea known as the time value…

Q: Assume that Sample Company purchased factory equipment on January 1, 2017, for $90,000. The…

A: “Since you have asked multiple question, we will solve the first question for you. If you want any…

Q: What should be multiplied to the quantity of final products of the current year if we want to…

A: National income at constant prices: If goods and services produced in a year are valued at fixed…

Q: What does the annuity factor indicate?

A: Annuity factor It indicates the discounted factor’s sum for all the n maturities when all n…

Q: What is Annual-payments option?

A: The annual payment option is the obligation to pay the amount to the receiver annual instead of the…

Q: When is it recommended to compute the effective interest rate per payment period?

A: When there is a compounding of interest, then the EIR per payment period is recommended. As it is a…

Q: What are two challenges and limitations of financial ratios? Provide a real example

A: Financial ratios refer to those lists of accounting ratios that relatively measures two selected…

Q: What is life-cycle budgeting?

A: Budgeting:Budgeting refers to preparation of financial statements that show all the incomes and…

Q: hat are examples of expenses that require estimates for the future and why do we do this?

A: Expenses An expense is a particular kind of outlay that appears on the income statement and is…

Q: What is maturity date?

A: Maturity dates are generally used in order to classify the securities as short term, medium term or…

Q: What is the relevance of preparing interim financial statements?

A: Financial statements are prepared at the year which shows the net income earned by the business…

Q: Explain the Accumulation of a Future Sum?

A: The concept which gives the value or worth of money held today at the future date due to its…

Q: compare Future Value and Present Value?

A: The comparison between present value and future value is as follows:

Q: What is payout period and how is it calculated?

A: Companies employ various methods in the process of selection of the most financially appropriate…

Q: What effect do interest rates have on the calculation of future and present value? How does the…

A: The time value of money is a concept that is based on the idea that a given amount of money is worth…

Q: What is the initial investment plus interest?

A: The total of initial investment and interest will give the total value or worth of the investment…

Q: What are some possible financial decisions in which using the Future Value (FV) formula might be…

A: The concept of time value of money states that the money received today is worth more than that the…

Q: How can we calculate the net present worth of each payment?

A: The present value is the value of the sum received at time 0 or the current period. It is the value…