When an investor's accounting period ends on a date that does not coincide with an interest receipt date for bonds held as an investment, the investor must
a. make an adjusting entry to debit Interest Receivable and to credit Interest Revenue for the amount of interest accrued since the last interest receipt date.
b. notify the issuer and request that a special payment be made for the appropriate portion of the interest period.
c. make an adjusting entry to debit Interest Receivable and to credit Interest Revenue for the total amount of interest to be received at the next interest receipt date.
d. do nothing special and ignore the fact that the accounting period does not coincide with the bond's interest period.
Because that is where the best investment might lay.
Interest is the basis by which all investments should be measured, and calculating interest used to be a chore, even for the most seasoned of investors. Many chose to just leave it to their investment advisors. However, with the tools that the Internet provides to the common investor for free, people would be remiss not to calculate the interest on a particular investment as a common vetting procedure. Many financial sites provide free tools by which an investor can calculate the interest on an investment, both accounting and economic, based on current market conditions. Investors should be worried more about economic profit.
When interest rates are high, investors will consider investing in short term investments, instead of long term investments. When interest rates are low, investors will consider investing in bonds because they are safer.
Investment decisions are made by investors and stockholders about how and where money will be invested. Most of the time investments are made in the interest of companies and retirement plans.
required rate of return is the 'interest' that investors expect from an investment project. coupon rate is the interest that investors receive periodically as a reward from investing in a bond
creitors are the persons who have extended credit to the company.they are also interested in the financial statements because they wiil help them in ascertaining whether the enterprise will be in a position to meet its commitment towards them both regarding payment of interest and principal... investors: a person who is contemplaing an investment in a business will like to know about its profitability and financial position.a study of the financial statements will help them in this respect
Internal users include various interest parties: Management Employees (including Trade Unions) External users include various interested parties: investors Government Customers Suppliers Lenders Competitors The Public Special Interest Groups (eg an Environmental group) External auditors check the veracity of the published accounts for the business
The investors who keep the investment until the debt instrument matures will receive the market rate of interest on their investment from the date of purchase.
the central interest of accounting
muni bonds also called as municipal bonds are always a worthwhile investment to do. muni bonds are attractive to many investors because the interest income is exempt from federal income tax, and in many cases, state and local taxes as well. Municipal bonds can indeed be a worth while investment to many investors. They are very attractive because the interest income is exempt from federal income tax.
An investment interest calculator will calculate the amount of interest that you will have to pay on an investment on a home, car, or other type of big expense.
Yes. All assets, including a receivable (the right to receive money), should be reflected in the accounting.