Modes of extinguishing obligations when creditor abandons his right to collect.
Q: 1._____________ is the rate at which the net present value becomes zero. a. None of the options b.…
A: EXPLANATION:- Internal rate of return (IRR) is a way of measuring the value of return on the…
Q: Which of the following is not an advantage of the average rate of return method? a.includes the…
A: Average rate of return is a method of calculating return on the asset
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A: This question is answered as per IAS 29 "Financial Reporting in Hyperinflationary Economies"
Q: Which of the following statements about payback (payback period) is most correct? a. Payback…
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A: Payback period is the amount of time required to recover initial investment. Regular payback period…
Q: How can effective APR differ from nominal interest? A. Effective APR takes loan fees into account,…
A: Nominal interest rate is the stated interest rate on a loan. It is the interest rate which does not…
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Q: Which of the following statements regarding fixed-rate loans is true? Group of answer choices a.…
A: Fixed rate loans are loans which have a fixed rate of interest.
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Q: The definitions of default events are fairly standard, but what really constitutes a default? a. The…
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A: i) Payback period: Payback period is the expected time period which is required to recover the cost…
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A: Solution: As the discount rate increases "present value factors decrease".
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A: Solution: Payback period is one of the decision making criteria in capital budgeting. It measures…
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A: a) An inflation premium is added to interest rates for compensating for expected inflation by…
Q: The APR is a. the average annual percentage cost paid on deposits b. the average rate paid on…
A: The APR is (c) the average rate paid for credit
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Q: Q)5) One standard assumption for annuities and gradients is A) each payment occurs at the beginning…
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Q: 1. loaned or borrowed. _is the excess of resources (usually cash) received or paid ov 2. is the…
A: In this we have determine
Q: Δ%(MV) = -MD*Δr When we use this equation to evaluate a loan, this equation does not totally…
A: The values of the loans change when there is a change in the interest rates. The duration helps to…
Q: Interest prepaid by the buyer, which may be used to reduce the stated interest rate the lender…
A: It is the fees paid directly to the lender at the closing in exchange for a reduced interest rate.
Q: O a. None of the above Ob. Decrease in Money Supply O C. Increase in Money Supply d. No Change in…
A: Solution: Credit Creation Multiplier is a multiple which shows that how much multiple times the…
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Q: 5) One standard assumption for annuities and gradients is A) each payment occurs at the beginning of…
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Q: Which of the following is a disadvantage of the average rate of return method? a. fails to…
A: The question is asking about the disadvantages of the average rate of return method in accounting.…
Q: A change in money demand or a shift in the money demand curve is caused by a change in * the…
A: the increase demand of money shift the demand curve up.
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Q: To account for a down payment, adjust the _____ of the loan by subtracting it from the loan amount.…
A: A loan is a financial agreement where one party (known as the lender) offers funds, assets, or other…
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- 4. How can effective APR differ from nominal interest? A. Effective APR takes loan fees into account, while nominal interest does not. B. Effective APR will always be less than the nominal interest rate. C. Effective APR is less accurate than the nominal interest rate. D. Nominal interest takes loan fees into account, while effective APR does not.The definitions of default events are fairly standard, but what really constitutes a default? a. The second missed payment O b. Default only happens when you cannot pay the interest on the outstanding debt c. The first missed payment O d. Depends on what kind of grace period is granted and the agreement with the borrower9) A ______________ factor of credit policy effects occurs when a firm which institutes a credit policy finds it must bear the cost of some of its customers defaulting on their obligations.
- To account for a down payment, adjust the _____ of the loan by subtracting it from the loan amount. O present value (pv) future value (fv) rate O type1. True or false. Rate of return is the interest earned on the unpaid balance of an amportized loanAn increase in the Credit Creation Multiplier will result in an/a: O a. None of the above b. Decrease in Money Supply O C. Increase in Money Supply d. No Change in Money Supply
- 16. What do you call for the likelihood of loss due to customers are not paying their amounts owing? a. Discount risk b. Credit risk c. Payment risk d. Loss riskState whether the following statements are true of false. Statement 1: The conversion of the company’s short-termdebt into a long-term note payable would decrease both workingcapital and the current ratio. Statement 2:A user of financial statements who is a short-termcreditor is interested in the borrower’s ability to pay interestregularly. STATEMENT 1 STATEMENT 2a. True Trueb. True Falsec. False Trued. False FalseΔ%(MV) = -MD*Δr When we use this equation to evaluate a loan, this equation does not totally reflect the change in the present value of loans mainly because of the ignorance of which of the following factors a. Convexity b. Maturity c. Duration d. Immunization
- 97 Concpteal Fram The economic resource can be distributed to the owners. d. The resource has no use in the entity's operations and has no resale value 12. Which of the following does not meet the definition of an asset? a. Equipment that the entity intends, and is very certain, to acquire in the future. b. Inventories purchased and received but not yet paid. c Land received from a donation. d. A publishing title for a college textbook. The publishing title has no physical substance, meaning you cannot see or touch it. 13. Entity A determined that an asset exists. However, the asset's low probability of inflows of economic benefits and its very high level of measurement uncertainty affected Entity A's recognition decisions about the asset, as these raised doubt on whether the asset's recognition would result in useful information. Consequently, Entity A did not recognize the asset, but because Entity A deemed it relevant, information about the asset was nonetheless provided in the…Interest prepaid by the buyer, which may be used to reduce the stated interest rate the lender charges, are known as ▼ margins. points. payment caps. variable investments.Which of the following statements correctly describes aspects of simple interest as discussed in lectures? Group of answer choices A. More than one of the other statements are correct B. None of the other statements are correct C. loan that has been created that pays simple interest, will involve interest payments that are calculated on the basis of both the principal amount borrowed as well as any interest that has accumulated to date. D. By convention, simple interest is the main method used for the pricing of short-term debt securities like Treasury Notes. E. With simple interest, the future value of any cash flow is simply its current value discounted back at a rate of r% per period for n periods. I already know that C and D are compound interests however I am not sure about option E.