Finance Quizzes Online & Trivia

Time value is the monetary value that investors are willing to pay to own an option based on the amount of time left between the purchase date and expiry date. if you want to buy an option that has 3 months to expiry and is $5 out of the money versus an option that has 3 days to expiry and is $5 out of the money, you will place a higher value on the 3 month option. reason: there is more time for the 3 month option to turn into a profit. the option with only 3 days to expiry has a slim chance, so the time value on that 3 day option would be very low.

� notes to the financial statements provide important details about the company's financial condition not reported in the actual financial statements, for example, explanations of accounting policies or the descriptions of fixed assets. The auditor's report presents an independent opinion on the financial statements of the company being audited. the report is important because it ensures that the company's financial statements are fair and have been prepared in accordance with generally accepted accounting principles.

The United States Dollar is the official legal tender of the United States and the insulator territories per the US constitution since 1792. For most functional purposes, the dollar is divided into 1000 mills for accounting purposes. The current paper money consists of federal reserve notes that are denominated in United States dollars. When a salesperson creates an opportunity, they will select the currency used for that particular opportunity. International agencies can use numerous currencies in opportunities, forecasts, reports, quotes, and other currency fields. The administrator sets the "corporate currency," which reflects the currency of the corporation. The administrator also maintains the list of working currencies and their conversion rates relative to the corporate currency.

FalseFlotation costs represent the cost for a publicly traded company to issue new securities (often expressed as a percentage of the stock price). The correct way to account for flotation costs when performing NPV analysis is to increase the initial cost of the project by the amount of the flotation costs. Flotation costs should not be reflected in the equity component of the weighted average cost (the discount rate) used in NPV analysis because they represent a one-time expense that occurs only at the initiation of a project.

1. $3,600 -the opening balance in prepaid expenses ($1,500) results from a one-year insurance premium paid on 7/1/09. since this policy would have expired by 6/30/10, no part of the $1,500 is included in 12/31/10 prepaid expenses. the insurance premium paid on 7/1/10 ($3,200) would be partially expired (6/12) by 12/31/10. the remainder (6/12 × $3,200 = $1,600) would be a prepaid expense at year-end. the entire advance rental payment ($2,000) is a prepaid expense at 12/31/10 because it applies to 2011. therefore, total 12/31/10 prepaid expenses are $3,600. prepaid insurance ($3,200 × 6/12) $1,600 prepaid rent 2,000 total prepaid expenses $3,600

1. encompasses all expectations about possible cash flows.-the traditional approach to calculating present value employs one set of estimated cash flows and one interest rate. this approach is expected to continue to be used in many cases, for example, when contractual cash flows are involved. however, according to the fasbs conceptual framework, the ecf approach is applicable in more complex circumstances, such as when no market or no comparable item exists for an asset or liability. the ecf results from multiplying each possible estimated amount by its probability and adding the products. the ecf approach emphasizes explicit assumptions about the possible estimated cash flows and their probabilities. the traditional method merely includes those uncertainties in the choice of interest rate. moreover, by allowing for a range of possibilities, the ecf approach permits the use of present value when the timing of cash flows is uncertain.

A moderately darken arrangement under U.S. GAAP which speculate specific situations, a firm may dispose of a shortage in its held income account by repeating resources, liabilities, and value in a way like a liquidation. A firm's investors must consent to permit the accounting change, which basically resets the firm's books as if another company had acquired the benefits and liabilities of the old firm. Despite the fact that the possibility of quasi-reorganization has seen some recharged intrigue, the arrangement is still once in a while connected practically speaking. The possibility of quasi-reorganization holds request for some as the possibility of a "fresh start" is more energizing to speculators than gradually uncovering from a vast deficiency of held income. Some additionally contend that quasi-reorganization could be a compelling strategy for all the more precisely resetting the accounting adjusts of a firm when a genuine drop in resource esteems isn't sufficiently reflected. Quasi-reorganization remains very disputable, nonetheless, since it isn't genuinely a difference in financial reality, but instead a technique to influence books to seem greater.

1. $140,000 -the balance in the advertising expense account on 12/31/10 before adjustment is $146,000. since the sales promotional campaign is to be conducted in january, any associated costs are an expense of 2011. thus, the $15,000 cost of printing catalogs should be removed from the advertising expense account and recorded as a prepaid expense as of 12/31/10. in addition, advertising expense must be increased by the $9,000 cost of decembers radio advertisements, which are an expense of 2010 even though they were not billed to clark or paid until 2011. the $9,000 must be accrued as an expense and a liability at 12/31/10. therefore, 2010 advertising expense should total $140,000 ($146,000 $15,000 + $9,000).

A direct insurer shall have thefollowing information about a client:- A. Full name, including aliases B. Identity card number C. Residential address D. Nationality E. Date of birth

The correct answer is option A - $1.67 From the question stem, we can tell that: 2006 earnings - $580,000 Outstanding shares in 2006 = 400,000 Earnings per share 2006 = 580,000/400,000 = $1.45 In 2007, Earnings = x 1.25 =$725,000 Total shares outstanding for 2007 = 400,000 + 35,000 = 435,000 Earnings per share = 725,000/435,000 = 1.67 Therefore, the earning per share in 2007 is $1.67 Hope this helps

It would depend on where you are comfortable purchasing different products. Are you a traditional type of shopper? If yes, this means that you would rather see the items in person before you buy anything. You want to make sure that you are buying items that you truly want to get. If you are a more modern shopper, this means that you would rather buy online. Do not worry because there are different online shops that are available. Some of these online shops are trusted and will be able to send the items that you need to buy right at your own doorstep. Purchasing equipment does not have to be complicated.

The deficit is the term used for what the government receives from the taxes that taxpayers pay. This may be dependent on the amount of money that will also be spent by the individual. Debt is different. This is the acquired amount that a person has to pay to another person or a company. There are some people who may have acquired a lot of debt over the past months or years because they are trying to live a lavish lifestyle. This is not recommended because when you live beyond your means, you are bound to suffer after. Debt and deficit may affect each other in different ways. Remember that the interest of your debt may be added to your deficit every year.