Questions from Financial Accounting

Q: Define working capital. How is it computed?

Define working capital. How is it computed?

Q: Compute 2011 interest expense for the following note: face, $

Compute 2011 interest expense for the following note: face, $4,000; 12 percent interest; date of note, April 1, 2011.

Q: Explain the concept of the time value of money.

Explain the concept of the time value of money.

Q: If you hold a valid contract that will pay you $8

If you hold a valid contract that will pay you $8,000 cash in 10 years and the going rate of interest is 10 percent, what is its present value? Show your computations.

Q: You purchased an XIT auto for $18,000 by making

You purchased an XIT auto for $18,000 by making a $3,000 cash payment and six semi annual installment payments for the balance at 12 percent interest. Determine the amount of each payment.

Q: What two accounting equalities must be maintained in transaction analysis?

What two accounting equalities must be maintained in transaction analysis?

Q: What is a T-account? What is its purpose?

What is a T-account? What is its purpose?

Q: Bill’s Catering Company is at its accounting year-end, December

Bill’s Catering Company is at its accounting year-end, December 31, 2011. The following data that must be considered were developed from the company’s records and related documents: a. During 2011, of...

Q: What transactions are classified as investing activities in a statement of cash

What transactions are classified as investing activities in a statement of cash flows? What transactions are classified as financing activities?

Q: How is the current ratio computed and interpreted?

How is the current ratio computed and interpreted?