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- lessons for financial reoporting that effect Covid-19Create simple examples to illustrate the following concepts.i. Time value of moneyii. Effective interestiii. Sinking Fundiv. Amortized loanKnowledge Check 01 Which of the following describes how working capital is computed? Multiple Choice Current assets Current liabilities Current liabilities Current assets Current assets-Current liabilities Current assets + Noncurrent liabilities
- Match the words with the term. Question 6 options: 12345 financial need 12345 risk capital 12345 internal source 12345 external sources 12345 financing requirement 1. working capital 2. subordinated debt 3. lenders 4. short-term debt 5. retained earningsAnswer the following question a. Return on equityb. Total assets turnoverc. Return on assetsd. Current ratioe. Receivables turnoverWhich function of the financial system allows funds to flow from the surplus spending units to the deficit spending units. *a. provides liquidityb. promotes savingsc. means for storing wealthd. protection from risks
- The following accounts appear in the ledger of Sheridan Ltd. after the books are closed at December 31 ( \ in thousands). Share Capital - Ordinary, no par, ¥1 stated value, 400, 000 shares authorized; , ¥345,000 345, 000 shares issued Ordinary Share Dividends Distributable Prepare the equity section at December 31, assuming retained earnings is restricted for plant expansion in the amount of ¥100, 000. (Enter account name only and do not provide descriptive information.) SHERIDAN LTD. Statement of Financial Position (Partial)ME12Accounts with normal credit balances include: a) Assets and liabilitiesb) Revenues and expensesc) Liabilities and revenuesd) Revenues and assetsa. Return on equityb. Total assets turnoverc. Return on assetsd. Current ratioe. Receivables turnover
- Answer only for question Receivable turnover, total debt ratio, time interest earned ratio and cash coverage ratiotype of libailities Running finances under mark-up arrangements defination Current maturity of long-term finances definationDefine each of the following terms:a. Working capital; net working capital; net operating working capitalb. Relaxed investment policy; restricted investment policy; moderate investment policyc. Permanent current assets; temporary current assetsd. Current assets financing policy; maturity matching (self-liquidating) approache. Cash conversion cycle (CCC); inventory conversion period; average collection period;payables deferral periodf. Cash budget; target cash balanceg. Lockbox; account receivableh. Credit policy; credit period; discounts; credit standards; collection policy; credit terms;credit scorei. Trade credit; free trade credit; costly trade creditj. Promissory note; line of credit; revolving credit agreementk. Prime rate; regular, or simple interest; add-on interestl. Commercial paper; accruals; spontaneous fundsm. Secured loan