Financial Management - Study Mode

[#1066] Earnings that are not paid as dividends to stockholders and have cumulative amount are classified as
Correct Answer

(C) retained earnings

Explanation

Solution: Earnings that are not paid as dividends to stockholders and have cumulative amount are classified as retained earnings. Retained earnings are the profits that a company has earned to date, less any dividends or other distributions paid to investors. This amount is adjusted whenever there is an entry to the accounting records that impacts a revenue or expense account.

[#1067] In time value of money, periodic rate is
Correct Answer

(B) shown on timeline

Explanation

Solution: In time value of money, periodic rate is shown on timeline. A periodic interest rate can be charged on a loan or realized on an investment over a specific period of time.

[#1068] Claim against assets are represented by
Correct Answer

(B) retained earnings

Explanation

Solution: Claim against assets are represented by retained earnings. Retained earnings are the profits that a company has earned to date, less any dividends or other distributions paid to investors. This amount is adjusted whenever there is an entry to the accounting records that impacts a revenue or expense account.

[#1069] Rate charged by bank 12.5% on credit loans and 3% semi-annually on instalment loans is considered as
Correct Answer

(A) periodic rate

Explanation

Solution: Rate charged by bank 12.5% on credit loans and 3% semi-annually on instalment loans is considered as periodic rate. A periodic interest rate can be charged on a loan or realized on an investment over a specific period of time.

[#1070] Corporations that buy financial instruments with money accepted from savers are classified as
Correct Answer

(C) mutual funds

Explanation

Solution: Corporations that buy financial instruments with money accepted from savers are classified as mutual funds. A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities such as stocks, bonds, money market instruments, and other assets.