Explain the term Interest?

Q: What is notional principal?

A: This is a type of derivative used by two parties under a contract to exchange the consequences (net…

Q: What is imputed interest?

A: Interest: Interest is a charge against the amount due, Interest is paid on the amount borrowed as a…

Q: Which are the Elements of transactions Involving Interest?

A: Answer: The following are the elements of transactions that involving interests, Principal: The…

Q: Use Compound Interest-.

A: Time vale of money (TVM) means that the amount of money received in the present period will have…

Q: What is the empirical evidence on Uncovered Interest Parity?

A: Interest parity can be subdivided into two parts. these parts are: Covered interest parity…

Q: Explain the term Present Value of Perpetuities with an example?

A: Present value is the current value of a cash flow that can be occurred in future. Perpetuity is an…

Q: What is tmes-Interest earned?

A: Times-interest earned: This ratio quantifies the number of times the earnings before interest and…

Q: Identify the MARR (or external interest rate)?

A: A minimum acceptable rate of return (MARR) is the all-out advantage that a speculator wants to pick…

Q: What are the benefits of interest tables?

A: The question is based on the concept of interest table.

Q: In what situations is interest capitalized rather than expensed?

A: Capitalized interest is the cost of the funds used to finance the construction of a long term asset…

Q: Define the term premium?

A: Premium in finance has several definitions, with the initiative being the overall cost of purchasing…

Q: What is a statement of circumstances?

A: The external auditor is expected to lodge a statement of circumstances at the company's registered…

Q: a present obligation?

A: Given: To explain the economic resource and the present obligation as,

Q: What is meant by “right of return”? “Bill and hold”?

A: Financial accounting standards board (FASB): This is the organization which creates, develops, and…

Q: Write the methods of Calculating Interest?

A: Methods of calculating interest: The basic and fundamental methods for calculating interests are…

Q: What are collaterals?

A: Assets are those resources that have some economic value held by an corporation, individual, or…

Q: Define compound interest

A: Compound interest: Compound interest is the accumulation of interest to the principal amount of a…

Q: What is the essential concept in understanding compound interest?

A: Compound interest refers to the addition of interest amount to the principal. It is generally…

Q: What is imputed interest, and how does it work

A: The Answer:

Q: What is interest pooling and when is it appropriate?

A: Introduction : Pooling of interests is an accounting technique that allows for the consolidation of…

Q: Define Interest cost.

A: Cost: The amount paid to purchase the asset, install it, and put it into operations, is referred to…

Q: hat are the factors being considered in computing for the simple Interest?  State the simple…

A: The simple interest is an interest that is paid on the principal amount over the period. The simple…

Q: explain the term force of interest as used in interest theory.

A: interest : it is the compensation that the borrower of the capital pays to the lender for use of it.

Q: What is the definition of “actuarial present value”?

A: Accumulated Benefit Obligation: It is an inexact rate of a company's pension plan liability towards…

Q: interest on interest is known as

A: Interest is the amount of money that is required by the investor or lender for providing capital to…

Q: How does compound interest differ from simple interest?

A: Budgeting is a process to prepare the financial statement by the manager to estimate the…

Q: how is it possible that the avoidable interest can exceed the actual interest

A: Interest Cost: The cost charged on the borrowings financed by the lender to the company is known as…

Q: what is pooling of Interest Method?

A: The accounting method that governed how the balance sheets of two companies that were merged would…

Q: What is present value interest factor?

A: The present value interest factor is a mathematical equation used to estimate today's value of money…

Q: Define interest.

A: Interest is the amount charged by the lender for the money lend for specific period.

Q: briefly explain compound interest and the purpose of it

A: There are two methods of interest rate one is simple interest and other is compounding interest.

Q: Is there a particular kind of interest here. Recognize the difference between "simple interest" and…

A: HERE IS THRE ANSWER:

Q: What is Net realizable value?

A: Net realizable value means the amount that could be received after deducted all incidental expenses…

Q: Illustrate the methods of calculating Interest?

A: Traditionally, there are two methods of calculating interest : 1. Simple interest rate method 2.…

Q: What does the term noncontrolling interest mean?

A: This term is generally used when consolidated statement is prepared by the parent entity. There are…

Q: Define Explicit Interest.

A: Explicit interest is the amount of interest paid by loan or in other words actual interest paid on…

Q: What is the nature of interest? Distinguish between “simpleinterest” and “compound interest.”

A:

Q: What is a variable interest entity (VIE)?

A: Explain the term variable interest entity (VIE). A legal business structure is known as a variable…

Q: Define the term Effective interest?

A: Interest is the cost charged on amount lent to a borrower by a lender for use of his assets i.e.…

Q: What’s the difference between simple interest and add-on interest?

A: Interest is the amount of extra payments a borrower has to make to its lender as a return for…

Q: STATE THE SIMPLE INTEREST FORMULA.

A: Simple interest is used to compute the interest charged on a loan. The interest is computed on the…

Q: What is net present value? How does net preset value work?

A: Net present value:- Net present value is the investment evaluation technique, where we evaluate…

Q: What is Accumulated benefit obligation?

A: