A company can increase its rate of return on common shareholders' equity through issuing bonds rather than selling more shares of common stock

When the bonds in a bond issue have different maturity dates, the bonds are known as serial bonds.

 When the market rate of interest is greater than the contract rate of bond interest, the bonds will sell for an amount in excess of the bond face value

When bonds are sold at a premium, the carrying amount of the bonds payable will become progressively larger as the bonds near the maturity date.

In computing present value, we need to combine both the present values of the face value and the annuity payments.

Loans are normally secured from different financial institutions, the most common of which, are banks.

When bonds are redeemed at a price below the carrying amount of the bonds, the gain is credited to contributed capital.

To determine the amount, of equal payments which would include principal and interest on an installment note, divide the face value of the note by the appropriate present value factor from a present value table for a single amount.

A straight-line amortization method is not allowed in our country’s accounting standards

The bond with face value of P200,000 pays interest of 10% annually and matures in 3 years. Find the present value of the face value of the bond.

ABC company have a P200,000 bond with a stated or nominal rate of 10% and effective rate of 12%, that pays interest semi-annually and has a maturity of 3 years. Compute for the amount of interest payment per semi-annual period.

XYZ company have a P200,000 bond with a stated or nominal rate of 15% and effective rate of 20%, that pays interest semi-annually and has a maturity of 5 years. Compute for the amount of interest payment per annual period.

A form of debt incurred by an individual or other entity.

A fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental).

A loan to a company or government that pays investors a fixed rate of return over a specific timeframe.

A sum of money borrowed from a creditor and repaid in full with interest.

XYZ company have a P500,000 bond with a stated or nominal rate of 20% and effective rate of 20%, that pays interest semi-annually and has a maturity of 10 years. Compute for the amount of interest payment per annual period.

ABC company have a P300,000 bond with a stated or nominal rate of 15% and effective rate of 20%, that pays interest semi-annually and has a maturity of 5 years. Compute for the amount of interest payment per semi-annual period.

The bond with face value of P300,000 pays interest of 15% annually and matures in 5 years. Find the present value of the face value of the bond.

The cash maintained for emergencies such as the additional cash you keep during political and economic uncertainties.

Debts owed to a company by its customers for goods or services that have been delivered or used but not yet paid for.

The difference between the money coming in and the money coming out of your business for a specific period.

The three basic types of inventory are all of the following EXCEPT.

An inventory contains the basic components of the production process.

The bank’s approval may also be secured before cash dividends can be declared.

Debt investments are where an investor loans money to an entity that borrows the funds.

This financing can provide financial support and back-up during business expansion, facilitating the process and reducing any stress involved.

The inability of an investor to buy or sell an asset to avoid financial loss.

A form of financing in which a business owner trades a percentage of the business for a specific amount of money.

Issued by a financial institution that you can borrow money to make a purchase

They can provide several loan products catering to different types of needs.

It pertains to the ability of the company to access funds.

They provide funds in exchange for collateral, usually jewelry, or other items of value.

It is when a company borrows money to be paid back at a future date with interest.

The willingness of the borrower to repay the loan.

Security pledged for the payment of the loan.

The cash used for paying expenses such as salaries, utilities, rent, and taxes, among others.

A printed statement of the amount of cash received in a cash sale transaction.

The term for the goods available for sale and raw materials used to produce goods available for sale.

You need to save up to P1,500 in 1 year. How much should you save now if the bank offers a rate of 5%? Find the present value.

Ken deposited P1,500 in a bank with an interest rate of 5% for 1 year. What is the future value of your deposit?

Emilio borrows P1200 from a bank with 8% simple interest per year.  How much will he have to pay back total in 2 years?

Find the total amount of interest to the nearest cent if the interest is compounded annually. P2750 at 8% for 2 years.

Starting money = P350. Interest rate = 2.5%, Time = 3 years. How much interest?

What is the future value of a 4-year annuity of P1000 if the discount rate is 5%?

What is the present value of a 3-year annuity of P100 if the discount rate is 6%?

Compute the future value of P100 cash flow if r = 5% and t = 10 years.

The simple interest formula is I=Prt. The P represents the principal which is ____.

The simple interest formula is I=Prt.  What does the t represent?