In general finance, what is the term used to describe theinterest earned on both the initial principal and theaccumulated interest from previous periods?a) Simple Interest b) Effective Interest CompoundInterest c) Compound Interest d) Nominal Interest

Explanation of Simple Interest: Simple interest is the interest calculated only on the initial…

Answered: In general finance, what is the term…

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter13: Long-term Liabilities

Section: Chapter Questions

Problem 15Q: Does interest expense increase or decrease when a bond premium is amortized?

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When interest is calculated on the principal amount borrowed is known as what A. Annuity B. Simple interest C. Compound interest D. All of the above
Interest paid (earned) on only the original principal borrowed ( lent ) is often referred to as A. present value B. simple interest C. future value D. compound interest
what of the following is the correct calculation for interest cover : a- total debt / interest payable b- interest payable / total debt c- operating profit / interest payable d- interest payable / operating profit
Does interest expense increase or decrease when a bond premium is amortized?
Principal plus interest equals ______ of a note. (a) discount (b) net proceeds (c) interest rate (d) maturity value
,Match the following terms with the appropriate definition.Effective yield or interest rateMonetary liabilityCompound interestPresent ValueFuture value of a single amountA.Fixed obligation to pay an amount in cash.B.The rate at which money will actually grow.C.Interest accumulates on interest.D.Current worth of future cash flows.E.The money to which an amount invested will grow over time.
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Listed below are several terms and phrases associated with current liabilities. Pair each item from List A (by letter) with the item from List B that is most appropriately associated with it. 1. 2. Payable with current assets. 3. List A Face amount x Interest rate x Time. 4. a. b. Short-term debt to be refinanced with common stock. c. Present value of interest plus present value of principal. 5. Noninterest-bearing. 6. Noncommitted line of credit. 7. Pledged accounts receivable. 8. Reclassification of debt. 9. Purchased by other corporations. 10. Expenses not yet paid. 11. Liability until refunded. 12. Liability until satisfy performance obligation d. e. f. g. |h. I. J. k. 1. List B Informal agreement Secured loan Refinancing prior to the issuance of the financial statements Accounts payable Accrued liabilities Commercial paper Current liabilities Long-term liability Usual valuation of liabilities Interest on debt Customer advances Customer deposits
How is accrued interest calculated?

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In general finance, what is the term used to describe the interest earned on both the initial principal and the accumulated interest from previous periods? a) Simple Interest b) Effective Interest Compound Interest c) Compound Interest d) Nominal Interest