accounting

what would represent a correct calculation of interest earned on a six month, $100 investment?

$100 principal x 10% rate x 6/12 = $5 interest

Which of the following statements are generally true regarding the risk-return relationship?

-Market prices for products and commodities, as well as stock prices, reflect the basic risk-reward relationship. -The higher the expected return on an investment, the greater the associated risk. -The wider the possible range of outcomes, the greater the risk

What do you need to know to calculate the amount of interest earned on an investment?

-The interest rate per year -The principal amount invested -The length of time the funds are invested

what statement about trend analysis is correct

It generally leads to a more meaningful analysis when conducted over several years than does the observation of a single year's ratio result. correct

How is the amount of interest earned on an investment calculated?

Principal ($) x Rate (%) x Time (in years)

liquidity

_It is a firm's ability to meet its current obligations as they become due. _It is measured by relating current assets and current liabilities as reported on the balance sheet.

trend analysis of ratios

is a meaningful comparison despite the use of different financial accounting alternatives to develop the data used in the ratios

what is trend analysis

it generally leads to a more meaningful analysis when conducted over several years than does the observation of a single year's ratio result.

a firms liquidity refers to

its ability to meet its current obligations as they become due.

The DuPont model for ROI expresses __.

turnover as sales / average total assets