Tutorial 6
Problem 1
The future value of $100 received today and deposited
in an account for four years paying semiannual
interest of 6 percent is
A) $450.
B) $126.
C) $889.
D) $134.
Solution
Answer:
BUE
S2 2017
Mathematics of Finance
Practice Problems
Practice Problems
Annuities
1. If you expect to retire in 30 years, are currently comfortable living on $50,000 per year and
expect inflation to av
5-1
Adjusting Entries for Merchandisers
Z-Marts Merchandise Inventory account at the end of
year 2011 has a balance of $21,250, but a physical
count reveals that only $21,000 of inventory exists.
5-2
Tutorial 7
Problem 1
Janet can get a $50,000 home improvement loan from
two banks. The first charges 7%(12) and the second
charges 7.05%(2). If she wants to pay off her loan in
5 years, which bank is
Tutorial 5
WEEK 6
Problem 1
A $50,000 financial instrument is worth $50,400 in 3
months. Find the rate of return at a simple interest
rate and at a bank discount rate.
Solution 1
i= 3.20%
d= 3.17%
Pro
5-1
Sales of Merchandise
Each sales transaction for a seller of
merchandise involves two parts:
Revenue received
in the form of an
asset from a
customer.
Recognition of the
cost of merchandise
sold to
Accounting Fundamentals 2
TUTORIAL 1
WEEK 2
True or False
1. Merchandise inventory consists of products that a company acquires to resell to customers.
2. A service company earns net income by buying
Think About
Discuss the following
Merchandise inventory account
Merchandise inventory cost flows
Merchandising Cost Flow in the Accounting Cycle
Period 1
Beginning
inventory
Net purchases
Merchandis
Chapter 18
MANAGERIAL ACCOUNTING CONCEPTS
AND PRINCIPLES
Chapter 18:MANAGERIAL ACCOUNTING CONCEPTS AND PRINCIPLES
What
are the differences between
management accounting and
financial accounting?
Chapt
Lecture 8
Ordinary Annuity &
Annuity Due
Annuities
An annuity is
a stream of equal periodic cash flows
over a specified period
The cash flows can be inflows of returns
earned or outflows of funds
TUTORIAL 9
PROBLEM 1
On January 1, 2015, American Eagle borrows EGP 90,000
cash by signing a four-year, 5% installment note. The note
requires four equal total payments of accrued interest and
princip
Problem 6-1A
1. Compute cost of goods available for sale and units available for sale
Beginning inventory .
March 5 .
50 units @ $50
200 units @ $55
$ 2,500
11,000
March 18 .
March 25 .
60 units @ $60
Tutorial 8
At the end of each month during a three-year
period, a hospital business manager invested
one-sixth of his monthly bonus of $900. How
much will the amount be four years after the
last inves
BUE
S2 2017
Mathematics of Finance
Practice Problems
Practice Problems
Time Value of Money and Compounded Interest
1) $100 is received at the beginning of year 1, $200 is received at the beginning of
Introduction
Investment decisions involve weighing up the risk and the likely rewards of various options. It is
often the riskiest alternatives that yield the highest possible gains while the least ri
Sample Exam Questions
1. A $4,000 , 12% bond will be redeemed on
May 1,2008. Interest is payable semiannually
on May 1 and November 1.
Find the purchase price of the bond if the date of purchase is Ma
Generic Feedback on In-Class Test
Module Title: Accounting Fundamentals 2
Module Code 16BACC02C
The In-class test covered the first two topics given during the semester. It consists
of two sections:
T
Quick study 5-3
Prepare journal entries to record each of the following purchases transactions of
merchandising company. show supporting calculations and assume perpetual inventory
system.
March 5: Pu
Lecture 11 Outline
The concept of stocks
The Stock Markets: Primary vs. Secondary Markets
Investing in Common Stocks
Cash flows for stockholders
Imputing the Commission/Brokerage Fee
Calculating
Tutorial 2
Mathematics of Finance
a)
b)
Find the simple interest on $425 at 5% for:
2 years.
4 months.
At 2 years= $42.5
At 4 months= $7.08
Martin invested 450$ and yielded 60$ in one
year, what was t
Lecture 4 Outline
Practicing calculating Future Value and Present Value
Equivalent Value
Net Present Value (NPV)
Partial Payments: - Merchants Rule
- U.S. Rule
Lecture 12 Outline
Board of Directors
Proxy Voting
Features of Common Stock
Features of Dividends
Types of Shares: 1.Preferred shares
2. Common shares
Types of Bonds: 1.Government/Corporate bond
Accounting for
Merchandising Operations
Chapter 05
Points to be covered
Merchandising Activities
Reporting income
Reporting inventory
Operating cycle
Inventory systems
Merchandising purchases
Purcha
Lecture 3 Outline
Bankers Rule
Present Value at Simple Interest
Future Value at Simple Interest
Equations of Value: - Time line diagram
- Focal Date
Sample Book Problems
Accounting Fundamental 2
Selection of theoretical and practical questions
Q1 . Advances in technology have greatly reduced the cost of a perpetual inventory system.
What advantages does a perpetual in
Tutorial 3
Multiple Choice
1.
Find the exact time from November 14, 2004, to
April 24, 2005.
a) 159
b) 160
c) 161
d) 162
e) None of these
Answer: C)
Multiple Choice
2. How long will it take $8000 to e