Future value of Ordinary Annuity = C x cfw_(1 + r) ^n - 1)/r
Where r=interest rate= 9%=9/12=0.75% per month.
And n is the number of payments in years=12 x 10=120 payments.
C is cash flow per period= 200 per month
Amount at ten years= C x cfw_(1
It is concerned with the rights and duties of persons i.e. individuals and
of civil law include: Law of contract
Law of torts
Law of property
Law of marriage
Law of succession
When a persons civil or private rights are
REGISTRATION OF LIMITED LIABILITY COMPANIES IN KENYA.
PROCEDURE FOR COMPANY REGISTRATION.
Proposed name must be reserved pending registration Names can only be reserved
for thirty days).
Application for reservation are made in writing and be
(a) Two accounting concepts or conventions could clash or there could be
inconsistency between them.
Give two examples of such situations and explain how the inconsistency should
Accruals and prudence
The accruals concept requires fut
2. Role of distributors and manufacturers in supply base.
Distributors play a significant role in the supply chain whereby distributors can bring real value
Distributors are flexible in financial considerations such as prolonged payment terms
The World saving of world economy is the total sum total of private and public savings.
World savings = private + government savings
= Y-T-C(Y-T) + (T-G)
a) Effect on world public saving.
Increase in tax causes a 1-for 1 increas
Expected return us stock=17%,
Expected return on Netherlands =15%
Pure rate of return=risk free rate of return=2%, Risk premium=7%
Find beta which is the measure of systematic risk in each country
Expected Return = Risk free + beta (Risk premium - Risk fr
The setting up of Walmart can have both good and bad effect on the local community although it could
be hard to generalize since they try as much as possible to respond to customer interest according to the
Walmart Director of community and media relation
Olsens Clothing Stores
20 year bond
Payment is semiannual
YTM = I = 10/2 = 5%
Periods n = 20 x 2 = 40.
Coupon rate= 8%
Semimanual coupon rate = 8%/2 =4%
Semiannual coupon payment = 0.04 x 1000 = $40
= 40 x cfw_1-[1/ (1 + 0.05)^40]/0.05 + 100
(a) Define the following accounting concepts and for each explain their implication
in the preparation of financial statements.
The Going concern concept
Business entity concept