When using the internal rate of return method, interest payments shouldA. not be discountedB. be includedC. not be includedD. be discountedfor the purposes of calculation.

While using Internal rate of return calculation we have to discount each element of income and cost…

Answered: When using the internal rate of return…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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punts receivable ipment umulated deprec tes payable
1. Explain how an installment loan differs from revolving credit in terms of risk and the nature of the return to the lender.
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.
9. Face value of a note payable plus interest is called Omaturity value. O face value. Oproceeds. Oprincipal.
The two methods of accounting for uncollectible receivables are the allowance method and the Ca. equity method Ob. direct write-off method Oc interest method Od. cost method
Credit risk refers to: Question 10 options: Risk from reclassification of the creditworthiness of the borrower Risk from a change to the interest rate on a loan Risk of a change to the repayment schedule of a loan Risk of a change to the maturity of a credit
acc2
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 type
The interest method of amortizing discount provides for a. Increasing amortization and decreasing interest income b. Decreasing amortization and decreasing interest income c. Decreasing amortization and increasing interest income d. Increasing amortization and increasing interest income
1. True or false. Rate of return is the interest earned on the unpaid balance of an amportized loan
TRUE OR FALSE: An implicit or imputed rate of interest must be used when long-term notes are issued at a stated rate of interest that is materially different from the market rate of interest.
blank options are margins, payment caps, points, variable investments

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When using the internal rate of return method, interest payments should OA. not be discounted OB. be included OC. not be included OD. be discounted for