The concept of interest.

Question

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Answer 1

Question

Chapter 7, Problem 7.1Q

To determine

To explain: The concept of interest.

Expert Solution & Answer

Answer to Problem 7.1Q

Interest can be received or paid. It is received the amount has been provided to others and paid when it is taken from others. The interest amount is generally charged for consideration of inflation and time value of money.

Explanation of Solution

Solution:

Interest:

Interest refers to the amount which is supposed to be received on the money to be provided to other or to be paid on money to be received from others on credit or on loan. It is the amount that is charged on utilizing the money provided to others.

Interest is the fixed charged on some borrowed fund or the money provided to others. It works as the return on the funds invested for the person who provided the funds.
Interest is of two types that is simple interest and compounded interest. Simple interest is the type of interest where the rate of interest as well as the amount of interest remains same in each period.
While compound interest is the interest in which the rate is fixed but the amount of interest gets bigger with the passing of each period as it includes computation of next period’s interest on the current interest amount as well.

Conclusion

Thus, interest is the amount to be charged on the borrowed funds.

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Can you explain the correct approach to solve this general accounting question?

Wilson Manufacturing reported annual sales revenue of $4,250,000. During the year, accounts receivable decreased from a $95,000 beginning balance to a $75,000 ending balance. Accounts payable increased from a $60,000 beginning balance to a $90,000 ending balance. How much is cash received from customers for the year?

Please provide the answer to this general accounting question using the right approach.

Answer 2

Question

Chapter 7, Problem 7.1Q

To determine

To explain: The concept of interest.

Expert Solution & Answer

Answer to Problem 7.1Q

Interest can be received or paid. It is received the amount has been provided to others and paid when it is taken from others. The interest amount is generally charged for consideration of inflation and time value of money.

Explanation of Solution

Solution:

Interest:

Interest refers to the amount which is supposed to be received on the money to be provided to other or to be paid on money to be received from others on credit or on loan. It is the amount that is charged on utilizing the money provided to others.

Interest is the fixed charged on some borrowed fund or the money provided to others. It works as the return on the funds invested for the person who provided the funds.
Interest is of two types that is simple interest and compounded interest. Simple interest is the type of interest where the rate of interest as well as the amount of interest remains same in each period.
While compound interest is the interest in which the rate is fixed but the amount of interest gets bigger with the passing of each period as it includes computation of next period’s interest on the current interest amount as well.

Conclusion

Thus, interest is the amount to be charged on the borrowed funds.

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Answer 3

Question

Chapter 7, Problem 7.1Q

To determine

To explain: The concept of interest.

Expert Solution & Answer

Answer to Problem 7.1Q

Interest can be received or paid. It is received the amount has been provided to others and paid when it is taken from others. The interest amount is generally charged for consideration of inflation and time value of money.

Explanation of Solution

Solution:

Interest:

Interest refers to the amount which is supposed to be received on the money to be provided to other or to be paid on money to be received from others on credit or on loan. It is the amount that is charged on utilizing the money provided to others.

Interest is the fixed charged on some borrowed fund or the money provided to others. It works as the return on the funds invested for the person who provided the funds.
Interest is of two types that is simple interest and compounded interest. Simple interest is the type of interest where the rate of interest as well as the amount of interest remains same in each period.
While compound interest is the interest in which the rate is fixed but the amount of interest gets bigger with the passing of each period as it includes computation of next period’s interest on the current interest amount as well.

Conclusion

Thus, interest is the amount to be charged on the borrowed funds.

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Answer 4

Question

Chapter 7, Problem 7.1Q

To determine

To explain: The concept of interest.

Expert Solution & Answer

Answer to Problem 7.1Q

Interest can be received or paid. It is received the amount has been provided to others and paid when it is taken from others. The interest amount is generally charged for consideration of inflation and time value of money.

Explanation of Solution

Solution:

Interest:

Interest refers to the amount which is supposed to be received on the money to be provided to other or to be paid on money to be received from others on credit or on loan. It is the amount that is charged on utilizing the money provided to others.

Interest is the fixed charged on some borrowed fund or the money provided to others. It works as the return on the funds invested for the person who provided the funds.
Interest is of two types that is simple interest and compounded interest. Simple interest is the type of interest where the rate of interest as well as the amount of interest remains same in each period.
While compound interest is the interest in which the rate is fixed but the amount of interest gets bigger with the passing of each period as it includes computation of next period’s interest on the current interest amount as well.

Conclusion

Thus, interest is the amount to be charged on the borrowed funds.

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Answer 5

Chapter 7, Problem 7.1Q

To determine

To explain: The concept of interest.

Expert Solution & Answer

Answer to Problem 7.1Q

Interest can be received or paid. It is received the amount has been provided to others and paid when it is taken from others. The interest amount is generally charged for consideration of inflation and time value of money.

Explanation of Solution

Solution:

Interest:

Interest refers to the amount which is supposed to be received on the money to be provided to other or to be paid on money to be received from others on credit or on loan. It is the amount that is charged on utilizing the money provided to others.

Interest is the fixed charged on some borrowed fund or the money provided to others. It works as the return on the funds invested for the person who provided the funds.
Interest is of two types that is simple interest and compounded interest. Simple interest is the type of interest where the rate of interest as well as the amount of interest remains same in each period.
While compound interest is the interest in which the rate is fixed but the amount of interest gets bigger with the passing of each period as it includes computation of next period’s interest on the current interest amount as well.

Conclusion

Thus, interest is the amount to be charged on the borrowed funds.

Answer 6

Chapter 7, Problem 7.1Q

To determine

To explain: The concept of interest.

Expert Solution & Answer

Answer to Problem 7.1Q

Interest can be received or paid. It is received the amount has been provided to others and paid when it is taken from others. The interest amount is generally charged for consideration of inflation and time value of money.

Explanation of Solution

Solution:

Interest:

Interest refers to the amount which is supposed to be received on the money to be provided to other or to be paid on money to be received from others on credit or on loan. It is the amount that is charged on utilizing the money provided to others.

Interest is the fixed charged on some borrowed fund or the money provided to others. It works as the return on the funds invested for the person who provided the funds.
Interest is of two types that is simple interest and compounded interest. Simple interest is the type of interest where the rate of interest as well as the amount of interest remains same in each period.
While compound interest is the interest in which the rate is fixed but the amount of interest gets bigger with the passing of each period as it includes computation of next period’s interest on the current interest amount as well.

Conclusion

Thus, interest is the amount to be charged on the borrowed funds.

Answer 7

Chapter 7, Problem 7.1Q

To determine

To explain: The concept of interest.

Answer 8

Expert Solution & Answer

Answer to Problem 7.1Q

Interest can be received or paid. It is received the amount has been provided to others and paid when it is taken from others. The interest amount is generally charged for consideration of inflation and time value of money.

Answer 9

Expert Solution & Answer

Answer 10

Expert Solution & Answer

Answer 11

Explanation of Solution

Solution:

Interest:

Interest refers to the amount which is supposed to be received on the money to be provided to other or to be paid on money to be received from others on credit or on loan. It is the amount that is charged on utilizing the money provided to others.

Interest is the fixed charged on some borrowed fund or the money provided to others. It works as the return on the funds invested for the person who provided the funds.
Interest is of two types that is simple interest and compounded interest. Simple interest is the type of interest where the rate of interest as well as the amount of interest remains same in each period.
While compound interest is the interest in which the rate is fixed but the amount of interest gets bigger with the passing of each period as it includes computation of next period’s interest on the current interest amount as well.

Answer 12

Conclusion

Thus, interest is the amount to be charged on the borrowed funds.

Answer 13

Ch. 7 - Prob. 7.1Q Ch. 7 - Prob. 7.2Q Ch. 7 - If interest is compounded more than once a year,...Ch. 7 - Prob. 7.4Q Ch. 7 - Can an ordinary annuity table be used to determine...Ch. 7 - Prob. 7.6Q Ch. 7 - Is the present value of an ordinary annuity more...Ch. 7 - Prob. 7.8Q Ch. 7 - Simple Interest. Assume Shafer Corporation...Ch. 7 - Compound Interest. Assume Shafer Corporation...

The concept of interest.

To explain: The concept of interest.

Answer to Problem 7.1Q

Explanation of Solution

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Chapter 7 Solutions