Kerry Corporation is planning to get a 270-day $500,000 simple interest loan from its bank at a quoted interest rate of 12 percent. If the bank has a 20% compensating balance requirement and Kerry currently holds no funds at the lending bank, what is the effective annual rate (eEAR) of the loan? (Assume there are 360 days in a year. Round your answer to two decimal places.)?
A. ?11.52%
B. ?13.78%
C. ?14.25%
D. ?15.27%
E. ?12.55%
Answer: D
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Customer profitability analysis (CPA) is best conducted with the tools of an accounting technique called ________
A) input-output analysis B) factor analysis C) revenue-based costing D) activity-based costing E) future date costing
On February 15, Jewel Company buys notes of Marcelo Corp. for $200,110. The investment is classified as long-term available-for-sale securities. This is the company's first and only investment in available-for-sale securities. The journal entry to record the purchase on February 15 is:
A. Debit Debt Investments-Trading $200,100; credit Cash $200,100. B. Debit Debt Investments-Trading $200,110; credit Notes Payable $200,110. C. Debit Long-Term Investments-AFS $200,110; credit Cash $200,110. D. Debit Debt Investments-HTM $200,100; credit Cash $200,100. E. Debit Debt Investments-AFS $200,110; credit Notes Payable $200,100.
The statement of cash flows is viewed by many as the most important financial statement because it provides evidence of the company's ability:
a. to meet its short–term financial obligations. b. to maintain its budgeted cash balance. c. to raise capital from public issue. d. to pay its interest on loan in time.
How should you respond if an interviewer asks Why should we hire you when other applicants have more experience?
A) Admit that you are less qualified to show that you're honest, but stress that you will work more cheaply than applicants with more experience or training. B) Show your confidence in your own ability by stressing strengths such as your openness to new ideas and your knowledge of the latest methods and equipment. C) Identify a major weakness and describe how you are correcting it; this will prove to the interviewer your strong work ethic and determination. D) Don't answer the question because it is clear that you're not going to get the job.